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Author: 


Johnson,  Emory  Richard 


Title: 


Relation  of  taxation  to 
monopolies 

Place: 

Philadelphia 

Date: 

[1 894] 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


MASTER    NEGATIVE    # 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


Business 

D130 

J63 


Johnson,   Emory  Richard,   1864-  1950. 

Relation  of  ta^cation  to  monopolies;   a  paper 
submitted  to  the  American  Academy  of  Political 
and  Social  Science.     2d  ed.     Philadelphia, 
American  Academy  of  Political  and  Social 

Science  ^1894:2 

cover-title,  93  p.  diagrs.  (American  Acad- 
emy of  Political  and  Social  Science.  Publica- 
tions, no.  116) 

Pages  also  numbered  764-789. 


( 


Business 

D130 

J63 


CONTIkUEd  OK  NEXT  CAKD 


Johnson,  Emory  Richard,  1864-  1950.  Relation 
of  taxation  to  monopolies,   t^^^^a   (Card  2) 

Reprinted  from  the  Annals  of  the  American 
Academy  of  Political  and  Social  Science,  vol. 
4,  no.  5. 


1.  Taxation.  2.  Monopolies. 


RESTRICTIONS  ON  USE: 


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FILMED  BY  PRESERVATION  RESOURCES,  BETHLEHEM,  PA, 


BIBLIOGRAPHIC  IRREGULARITIES 

MAIN  ENTRY:    Johnson.  Emory  Richard 

Relation  of  taxation  to  monopolies 


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RELATION  OF  TAXATION  TO  MONOPOLIES. 


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RELATION  OF  TAXATION  TO  MONOPOLIES. 

To  the  legislator  and  taxpayer  taxation  is  a  purely  prac- 
tical matter;  to  the  economist  it  is  a  theoretical  question 
having  practical  bearings.  In  a  treatment  of  the  general 
subject  of  economics  taxation  should  be  discussed  in  connec- 
tion with  the  distribution  of  wealth.  The  State  obtains 
most  of  its  revenue  by  taxation,  by  appropriating  to  itself  a 
portion  of  the  goods  resulting  from  productive  effort.  If 
the  State  is  to  take  this  intelligently,  it  must  know  from  what 
source  and  upon  what  fund  it  is  drawing  the  sums  assessed; 
and  it  cannot  know  this  unless  the  laws  governing  the  distri- 
bution of  wealth  are  understood.  The  only  sound  basis  of  a 
theory  of  taxation  must  be  a  true  theory  of  distribution. 

A  study  of  the  laws  of  distribution  will  reveal  the  ulti- 
mate source  from  which  taxes  must  be  drawn.  The  State's 
chief  ccncem  in  framing  tax  laws  is  in  the  right  choice  of 
the  particular  objects  upon  which  it  is  wise  to  levy  her 
assessments.  It  is  known  that  most  objects  have  the  power 
of  shifting  the  burden  of  a  tax;  and  it  is  desirable  to  know 
how  this  shifting  process  is  going  to  take  place,  what  laws 
govern  the  direction  it  is  to  take  and  determine  where  it  is 
to  end.  Whenever  a  tax  has  been  shifted  the  object  taxed 
has  been  able  to  raise  prices  and  change  objective  values. 
This  change  in  objective  values  may  not,  but  quite  likely 
will,  modify  consumption.  Now,  the  State  may  set  out 
with  the  purpose  of  raising  a  revenue  without  altering 
objective  values  or  modifying  consumption,  or  it  may  desire 
to  use  the  taxing  power  to  accomplish  just  the  opposite. 
Can  the  State  do  either  one  or  both  of  these  things,  and  if 
so,  how  ?  The  legislator  must  find  in  the  laws  of  distribu- 
tion, including  those  which  reveal  the  basis  and  nature  of 

[764] 


Rb;i,ation  of  Taxation  to  Monopoues.  69 

value,  the  knowledge  that  will  enable  him  to  answer  the 
question. 

No  eclectic  treatment  of  taxation  can  be  fruitful  of  results, 
hence  the  successive  arguments  which  are  here  presented  in 
the  development  of  a  theory  of  taxation  constitute  the  links 
in   a  chain  of  deductive  reasoning.      The  premises  from 
which  this  reasoning  sets  forth  being  the  laws  of  distribu- 
tion, these  laws  are  first  enunciated  as  succinctly  as  is  con- 
sistent with  clearness.     As  the  result  of  definite  laws,  which 
have  been  stated  by  the  more  recent  economists,  the  several 
factors  in  production  share  very  unequally  in  the  distribu- 
tion of  the  results  of  productive  effort.     Monopolies,   in 
whatever  way  the  one  using  the  term  may  define  its  mean- 
ing, are  generally  conceded  to  receive  an  especially  large 
share  in  distribution  at  the  present  time.     In  the  case  of  no 
other  recipient  of  the  surplus  of  production,  however,  is 
there  so  much  confiision  in  the  meaning  of  terms  used,  and 
such  indefiniteness  of  thinking;  thus  the  following  discus- 
sion of  distribution  may  well  devote  a  considerable  space  to 
discussing  the  basis  of  monopolies,  to  setting  forth  their 
real  nature,  and  to  classifying  them  as  sharers  in  the  surplus 
arising  from  production. 

Economics  has  ample  need  of  such  an  analysis  as  this,  A 
clearer  definition  and  classification  of  monopolies,  if  based  on 
a  fiindamental  analysis  of  the  subjective  and  objective  con- 
ditions of  consumption  and  production,  will  throw  much  light 
on  future  discussions  of  distribution  generally,  and  of  taxa- 
tion in  particular.  Having  enunciated  the  laws  of  distribu- 
tion and  classified  monopolies,  the  essay  will  pause  briefly  to 
characterize  the  different  kinds  of  taxes  in  such  a  way  as  to 
bring  out  their  real  nature,  and  then  proceed  with  the  elab- 
oration of  so  much  of  the  general  theory  of  taxation  as 
pertains  to  taxes  levied  with  the  purpose  of  producing  no 
other  effect  than  that  of  yielding  the  State  a  revenue.  The 
purpose  of  the  essay  as  a  whole  is  to  make  clearer  the  relation 
of  taxation  to  monopolies. 

[765] 


I 


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11^ 


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70 


Annai^  of  the  American  Academy. 


The  laws  which,  taken  together,  constitute  the  general 
theory  of  distribution  are  several  in  number.  The  gross 
results  of  productive  effort  must  cover  six  items:  First,  the 
costs  or  sacrifices  which  producers  undergo  in  production. 
Measured  objectively  in  material  goods,  this  item  includes 
what  society  must  give  producers  in  order  to  place  them  in 
as  good  a  position  at  the  end  of  production  as  they  were  at 
the  beginning.  Second,  the  wages  which  laborers  are  able 
to  secure  in  excess  of  remuneration  for  sacrifices.  This 
share  of  the  surplus  may  be  termed  surplus  wages.  It  is 
not  a  differential  fund,  and  its  amount  depends  upon  the 
standard  of  life  which  laborers  seek  to  maintain,  and  upon 
the  strength  which  they  can  exercise  in  enforcing  their 
demands  for  such  wages  as  will  enable  them  to  maintain  or 
to  raise  their  conditions  of  living.  Third,  land  rents,  the 
differential  income  received  by  the  owners  of  those  appro- 
priated natural  agents,  whose  productivity  or  desirability  is 
greater  than  that  of  the  least  productive  or  desirable  natural 
agents  which  society  finds  it  necessary  to  appropriate.  To 
this  must  be  added  a  fourth  share,  commonly  called  rent  by 
the  business  man.  It  is  the  income  received  by  the  owners 
of  the  natural  agents  on  the  margin  of  appropriation. 
There  are  no  lands  but  what  can  command  some  rent;  the 
owners  of  lands  on  the  margin  receive  an  income  which,  in 
economic  literature,  has  been  termed  marginal  rent.  Fifth, 
the  differential  income  which  undertakers  and  skilled  laborers 
can  demand  because  of  their  superior  intelligence  or  skill. 
General  Walker  has  applied  the  term  **  profits  "  to  the  dif- 
ferential income  of  undertakers,  but  in  the  case  of  laborers, 
as  well,  special  intelligence  and  skill  enable  them  to  secure 
differential  wages.  In  the  case  of  undertakers  and  laborers 
the  differential  amounts  secured  depend  upon  personal  differ- 
ences in  endowments  or  attainments,  and  the  common  term 
of  personal  rent  may  well  be  employed  for  the  income  of 
both  classes.  This  use  of  personal  rent  is  exactly  analogous 
to  the  use  of  land  rent  to  designate  the  differential  income 

[766] 


i 


RE1.AT10N  OF  Taxation  to  Monopoues.  71 

from  natural  agents.  The  sixth,  and  last,  item,  which  the 
results  of  productive  effort  must  cover,  is  interest  on  capital. 
The  amount  of  this  share  is  fixed,  as  the  recent  economists 
have  shown,  by  the  conditions  which  determine  the  value 
that  men  put  on  present,  as  compared  with  future,  goods. 

The  fact  that  these  items  are  here  stated  seriatim  is  not 
meant  to  imply  that  they  share  according  to  any  given  order 
in  the  distribution  of  the  gross  product.  The  portion  which 
each  receives  is  fixed  according  to  a  definite  law  of  its  own. 
None  of  the  factors  in  distribution  plays  the  role  of  a  residual 
claimant. 

These  several  shares  having  been  provided  for,  each 
according  to  its  own  peculiar  law,  there  still  remains,  in  a 
progressive  society  such  as  our  own,  a  large  residue  or  free 
surplus,  the  study  of  whose  distribution  among  the  factors 
of  production  gives  rise  to  some  of  the  most  fiiiitful  investi- 
gations that  have  recently  been  made  in  economic  theory. 
It  is  the  distribution  of  this  free  surplus  which  chiefly 
interests  us  in  this  discussion  of  a  theory  of  taxation;  it  is 
necessary,  then,  to  state  with  some  fullness  the  law  which 
governs  the  apportionment  of  this  fiind  among  the  factors 
of  production. 

Before  doing  this,  however,  it  will  be  well  to  present,  as 
clearly  as  may  be,  the  relation  which  the  several  shares  of 
distribution  hold  to  each  other.  This  can  best  be  done  by 
employing,  in  a  modified  form,  some  diagrams,  with  which 
the  readers  of  Professor  Patten's  works  are  already  familiar: 

It  is,  perhaps,  hardly  necessary  to  explain  that  in  Figure  I 
the  line  a  j  indicates  the  quantity  of  goods  produced,  that 
the  line  a  f  represents  the  utility  derived  from  the  first 
increment  of  consumption,  that  the  line  /  g  that  derived 
from  the  last  increment,  and  that  the  whole  figure  a  f  g  j^ 
indicates  the  total  sum  of  utiUties  possessing  value.  The 
costs  necessary  to  produce  these  utilities  are  shown  by  the 
figure  a  b  i  j.      The  value  of  goods  produced  being  fixed 

[767] 


^ 


M 

^^^ 


I 


•-xTm/K-tmi.- 


mm 


^   , 


^^' 


.  i 


-;< 


72 


Annai^  of  thk  American  Acadkmy. 


by  the  margin  of  consumption,  their  total  value  is  repre- 
sented by  the  figure  a  e  g  j.  The  total  utility  which  the 
consumption  of  goods  affords  consumers  exceeds  their  total 
value  by  an  amotmt  indicated  by  the  area  e  f  g.  This  is 
the  consumer's  surplus.  The  difference  between  the  costs 
and  the  total  value  of  produced  goods  is  the  producer's  sur- 
plus, represented  by  the  figure  b  e  g  i. 


Figure  I. 

Let  this  fundament  diagram  now  be  so  modified  as  to  show 
the  relationship  which  the  several  shares  in  distribution 
have  been  declared  to  hold  to  each  other: 

Figure  II  indicates  the  way  in  which  the  several  shares 
participate  in  the  distribution  of  the  producer's  surplus — 
that  portion  of  the  entire  figure  covered  by  the  area  b  e  g  i. 
That  part  of  the  producer's  surplus  which  goes  to  owners 
of  natural  agents,  undertakers  and  other  producers  possess- 
ing especial  intelligence  or  skill,  as  the  differential  incomes 
of  land  rents  and  personal  rents,  is  shown  by  the  triangle  h 
c  i.  Within  the  quadrilateral  c  d  h  i  are  indicated  the  non- 
differential  shares  distributed  as  marginal  rents,  interest, 
and  surplus  wages.  The  five  parts  of  the  producer's  surplus, 
personal    rents,    land  rents,  marginal  rents,   interest  and 

[768] 


^ii'il ywmm 


Relation  of  Taxation  to  Monopolies. 


73 


surplus  wages,  being  each  determined  by  an  independent 
law,  their  amount  at  any  particular  time  is  a  definite  and 
fixed  quantity.  Hence  this  part  of  the  producer's  surplus 
may  rightly  be  designated  (as  has  been  done  in  Figure  II) 
as  the  fixed  surplus.  The  remainder  of  the  producer's  sur- 
plus, d  e  g  h,  represents  a  fund  which  the  various  factors 
of  production  strive  to  secure.     It  is  a  free  surplus  which 


fht  Sxirbl 


us 


Surplus  Yila^s 


hrsonai  ^tjit 


Land  T^^nf 


Figure  II. 

goes  to  the  strongest  contestants.  The  producer's  surplus 
is  divided  into  a  fixed  and  a  free  portion.  When  speaking 
subsequently  of  fixed  and  free  surplus,  the  fact  that  they  are 
parts  of  the  producer's  surplus  will  be  understood  without 
using  such  a  clumsy  term  as  fixed  or  free  producer's  sur- 
plus. 

The  law  according  to  which  this  free  surplus  is  distributed 
may  now  be  discussed.  As  stated  by  Professor  Patten,  in 
his  "Stability  of  Prices,"  the  law  is  as  follows:  ''Of  the 
factors  necessary  for  production,  that  factor  which  tends  to 
increase  at  the  slowest  rate  will  reduce  the  shares  of  the  other 
factors  to  their  lowest  limits,  will  have  the  benefits  of  all 
improvements,  and  must  bear  all  permanent  burdens.'* 
These  factors,  according  to  the  classification  usual  at  the 

[769] 


■IM»" 


( 


74 


Annals  of  the  American  Academy. 


present  time,  are  grouped  under  the  four  heads,  natural  re- 
sources or  land,  labor,  capital  and  intelligence.  As  concerns 
the  rates  of  the  increase  of  these  four  groups,  it  is  probable 
that  the  first  is,  as  a  whole,  increasing  the  most  slowly. 
Each  group,  however,  consists  of  many  parts,  or  of  many 
di£ferent  kinds  of  enterprises  and  industries,  which  are  in- 
creasing as  productive  agents  at  various  rates  of  rapidity  and 
slowness.  Although  land  constitutes  the  group  which,  as  a 
whole,  is  increasing  the  slowest,  it  is  nevertheless  true  that 
parts  of  other  groups  are  increasing  more  slowly  than  some 
forms  of  natural  resources  are  being  utilized  in  production. 
It  is  necessary,  then,  in  discussing  the  distribution  of  the  free 
surplus,  not  to  compare  the  four  large  groups  with  each  other, 
but  rather  to  contrast  the  individual  parts  or  factors  which 
enter  into  the  large  groups.  If  factor  be  used  in  this  nar- 
rower sense.  Professor  Patten  is  strictly  accurate  when  he 
says  that,  "Whether  any  factor  obtains  a  large  or  small 
share  depends  upon  its  relative  rate  of  increase."*  Stated 
with  mathematical  precision  the  law  of  the  distribution  of 
the  free  surplus  would  be  formulated  in  this  wise:  The  free 
surplus  of  production,  the  benefits  of  improvements  which 
increase  the  free  surplus,  and  all  permanent  burdens  are 
distributed  among  the  factors  necessary  to  production  in 

*  "  The  Theory  of  Dynamic  Economics,"  p.  93.  Professor  Patten  illustrates  the 
working  of  the  above  law  as  follows  :  "  The  most  extreme  case  would  be  when 
there  was  no  demand  for  an  increase  of  any  of  the  factors  but  one.  The  most 
slowlj'  increasing  factor  would  secure  all  the  surplus  value,  and  the  more  rapidly 
increasing  factors  would  obtain  none  of  the  surplus,  except  their  share  of  the  dif- 
ferential gains.  Such  a  condition  of  aflfairs  would  never  happen  under  actual 
conditions.  It  merely  represents  an  ideal  case,  and  shows  how  the  distribution  of 
surplus  value  depends  on  objective  values.  Most  of  the  differential  gains,  however, 
will  be  absorbed  by  rent  and  profits.  In  the  earlier  stage  of  progress  rent  will  be 
the  prominent  element,  while  in  the  later  stages  profits  become  more  important. 
The  increase  of  intelligence  causes  society  to  esteem  more  highly  what  were  pre- 
viously regarded  as  the  poorer  natural  resources,  thus  reducing  the  relative  im- 
portance of  rent,  and  at  the  same  time  the  increasing  differences  in  men  tend   to 

augment  profits There  is,  however,  no  sharply  defined  line  between 

rent  and  profits  on  the  one  hand,  and  interest  and  wages  on  the  other 

In  a  dynamic  society  the  tendency  becomes  stronger  to  confine  rent  and  profits  to 
differential  gains,  and  to  give  all  the  surplus  value  to  the  capitalists  and  laborers. 
Yet  any  change  in  the  relative  rates  of  increase  will  change  the  distribution  of  the 
surplus  value,  giving  a  part  of  it  to  landlords  or  to  the  managers  of  industries." 

[770] 


". 


ReIvATion  of  Taxation  to  Monopoi^ies.  75 

inverse  ratio  to  their  rates  of  increase.  This  law,  however, 
is  to  be  understood  as  a  general  one,  explaining  the  normal 
distribution  of  the  free  surplus.  It  is  possible  for  sudden 
changes  in  particular  industrial  activities,  or  in  legislation, 
temporarily  to  suspend  the  regular  operation  of  the  law,  to 
the  advantage  of  the  less  favored  factors  in  production. 

In  order  fully  to  explain  this  law  it  is  necessary  first,  to 
show  what  are  the  slowest  increasing  factors  which  obtain 
the  benefits  arising  from  production  and  absorb  the  increas- 
ing fund  of  the  free  surplus;  and  second,  to  demonstrate 
that  these  slowest  increasing  factors  must  also  bear  the  per- 
manent burdens  which  nature,  or  society  by  tax  laws  or 
otherwise,  may  impose  on  any  agent  of  production.  The 
former  of  these  two  considerations  involves  the  definition, 
discussion  and  classification  of  monopolies;  for  it  will  be 
found  that  the  slowest  increasing  factors  of  production  are 
certain  kinds  of  monopolies,  whose  real  nature  can  be 
explained  only  by  showmg  their  relation  to  the  various  other 
forms  of  monopoly. 

By  a  monopoly  is  meant  any  productive  agent  possessing 
monopoly  force.  A  monopoly  force  is  that  which  gives  to  a 
productive  agent  the  disposal  of  a  definite  portion  of  the 
surplus  resulting  from  production.  This  is  a  broad  definition 
but  it  is  one  that  will  be  seen,  as  the  discussion  proceeds, 
to  apply  to  but  few  factors  that  have  not  been  more  or  less 
frequently  termed  monopoHes.  It  is  broad,  chiefly  because 
it  indicates  the  common  element  of  all  monopolies  and  makes 
it  possible  to  bring  them  all  into  relation  with  each  other. 

No  progress  can  be  made  with  a  discussion  of  monopolies 
without  first  clearly  perceiving  the  basis  upon  which  they 
rest.  This  basis  is  a  dual  one,  to  be  found  in  the  subjective 
conditions  of  men  as  consumers  and  producers,  and  in  the 
objective  conditions  under  which  production  is  carried  on. 
The  observation  and  analysis  of  objective  industrial  phe- 
nomena will  not  alone  suffice;  indeed,  the  initial  point  of 

[771] 


b 


*l^l'' 


I » 


Ml 


n 


;i 


I 


!! 


' 


76 


Annaxs  of  the  American  Academy. 


the  study  must  be  the  investigation  of  the  wants  and  desires 
of  men.  These  wants  and  desires  are  the  forces  which 
impel  men  to  adopt  and  insist  on  certain  peculiar  forms  of 
consumption.  Consumption  thus  holds  the  helm  and  dictates 
the  course  which  production  must  follow.  If  consumption 
insist  stoutly  upon  having  things  which  are  scarce  or  difficult 
to  obtain,  it  furnishes  the  first  of  the  conditions  which 
make  possible  the  establishment  of  a  strong  monopoly.  If 
consumption  have  the  inclination  and  ability  easily  to  read- 
just its  demands  when  the  objective  conditions  of  production 
make  the  satisfaction  of  those  demands  a  difficult  matter,  it 
can  partially,  if  not  wholly,  take  from  any  particular  industry 
its  monopoly  power.  As  between  the  laws  of  consumption 
and  those  of  production,  the  former  are  of  the  greater  assist- 
ance in  disclosing  the  real  foundation  of  monopolies,  what- 
ever may  be  the  form  they  take  in  production. 

The  other  fact  which  gives  monopolies  a  subjective  basis 
is  the  existence,  among  producers,  of  different  degrees  of 
intelligence  and  skill.  In  producing  the  things  demanded 
by  consumers  certain  producers,  by  virtue  of  their  superior 
endowments  or  attainments,  have  an  advantage  over  others; 
they  possess  a  monopoly  force  by  means  of  which  they  are 
able  to  secure  an  extra  portion  of  distributed  wealth. 

The  objective  basis  of  monopolies,  that  is,  the  objective 
phenomena  of  production  which  assist  an  industry  to  secure 
a  monopoly  force,  results,  as  is  well  known,  from  the  natural 
and  artificial  limitations,  which  condition  the  supply  of  those 
goods  and  services  that  consumers  demand.  Natural 
resources,  especially  those  necessarily  employed  in  the  pro- 
duction of  particular  kinds  of  goods,  are  either  limited  in 
quantity  or  available  at  any  given  time  imder  conditions  of 
increasing  cost;  the  same  is  true  of  the  number  of  desirable 
locations  for  dwellings,  sites  for  business  blocks  and  manufac- 
turing establishments,  and  of  possible  routes  for  profitable 
transportation  lines.  This  fact  gives  to  the  owners  of  natural 
agents  or   desirable  sites   and   routes   a   monopoly  power, 

[772] 


Rei^tion  of  Taxation  to  Monopolies.  yj 

provided  the  condition  of  consumption  be  such  as  to  enable 
them  to  take  advantage  of  their  ownership  by  raising  prices. 
At  any  given  time,  then,  the  strength  of  the  monopoly 
force  which  may  be  secured  by  an  industry  will  be  decided 
by  two  things:  Objectively,  by  the  physical  conditions  under 
which  production  is  carried  on  to  supply  the  goods  demanded 
by  consumers.     These  conditions  decide  in  what  lines  of 
productive  effort  competition  is  wholly  or  partially  restricted 
without  recourse  to  artificial  means,  and  determine  in  what 
industries  competition  can  be  checked  or  eliminated  by 
legislation,  combination  of  capital  or  other  artificial  devices. 
These  objective  conditions,  however,  are  of  significance 
only  because  of  the  conditions  controlling  the  consumption 
of  the  goods  produced.    To  restrict  or  exclude  competition  in 
any  line  of  production,  and  thus  to  gain  control  of  it,  is  of 
value  only  to  the  extent  that  consumption  is  controUable. 
The  intensity  and  stability  of  the  demand  for  the  articles 
produced  by  a  monopoly  are  what  give  the  monopoly  its 
strength  and  make  it  a  source  of  profit.      The  intensity  of 
the  demand  which  consumers  make  for  the  products  of  a 
monopolized  industry  determines  the  height  to  which  the 
prices  of  those  products  can  be  raised.     The  stability  of  the 
consumers'  demand  measures  the  extent  to  which  they  will 
insist  on  consuming  a  particular  product  instead  of  trying  to 
satisfy  their  desires  by  using  some  other  article. 

A  monopoly  was  declared  to  be  any  productive  agent  pos- 
sessing a  force  which  gives  the  productive  agent  the  disposal 
of  a  definite  portion  of  the  producer's  surplus;  and  in  the 
preceding  discussion  of  the  basis  of  monopolies  it  was  said 
that  better  grades  of  land  and  superior  intelligence  and  skill 
give  their  possessors  a  monopoly  force.  The  incomes 
derived  have  been  referred  to  as  differential,  and  termed  land 
rents  and  personal  rents.  I,ands  on  the  margin  of  cultiva- 
tion of  availability  for  other  uses  than  cultivation  also  consti- 
tute monopolies.  There  being  no  no-rent  lands,  and  land  for 
many  purposes  being  of  limited  quantity,  the  owners  of  the 

[773] 


[J 


I  •  ■  r 


5'^j^.«;-  y 


[^IWVfi-^T.rrrrpt 


f  <!l 


(1 


i  If 


J  1:1 


^11 


!  ':: 


{  I' 


78 


Annai^  of  the  American  Academy. 


least  desirable,  but  necessary,  lands  are  able  to  command  a 
definite  portion  of  the  surplus.  The  income  was  named 
marginal  rent.  Likewise  capital  is  able  to  command  a  defi- 
nite portion  of  the  producer's  surplus;  the  strength  of  its 
monopoly  force  being  dependent  on  the  value  which  men 
place  on  present,  as  compared  with  future,  goods.  Wage- 
earners,  as  a  class,  also  secure  a  portion  of  the  surplus;  the 
force  of  the  monopoly  they  possess  being  determined  by  their 
standard  of  life.  Such  are  the  monopoly  forces  that  control 
the  distribution  of  the  fixed  surplus  into  five  general  funds. 
The  forces  which  account  for  the  disposal  of  the  free  surplus 
give  to  certain  monopolies  not  only  what  they  may  secure  in 
the  form  of  land  rents,  personal  and  marginal  rents,  surplus 
wages  or  interest,  but  more  than  this.  Unless  prevented  by 
the  State,  certain  monopolies  will  receive  the  entire  free 
surplus. 

Before  proceeding  to  discuss  the  monopolies  which  secure 
the  free  surplus  it  will  be  best  to  give  an  outline  of  the  com- 
plete classification*  of  monopolies  that  is  here  had  in  mind. 
A  few  terms  used  will  require  explanation: 


'  Differential  .  . 


Monopolies.  . 


{ 


FORM. 

Land, 
Personal, 


Non-  differential 
or  Marginal .  . 


Optional 


■{ 


Land, 

Goods, 

Labor, 


Exclusive     /  S"J^te' 
\  Public, 


INCOMB. 

Land  Rent. 
Personal  Rent. 

Marginal  Rent. 
Interest. 
Surplus  Wages. 

Tallage. 
Fiscal  Taxes. 


*  The  classification  of  monopolies  presented  and  discussed  in  this  paper  is  to  be 
accredited  mostly  to  Professor  Patten.  On  January  15,  1894,  the  author  read  before 
Professor  Patten's  Seminary,  at  the  University  of  Pennsylvania,  a  paper  on  "The 
Theory  of  Taxation,"  in  which  a  distinction  was  drawn  between  the  two  kinds  of 
monopolies  here  classed  as  "Differential"  and  "Exclusive."  The  discussion 
which  followed  the  paper  induced  Professor  Patten  to  elaborate  and  present  to 
certain  members  of  the  Seminary  a  much  more  comprehensive  classification, 
which,  after  slight  modifications  as  the  result  of  suggestions  made  by  the  members 
of  the  Seminary,  assumed  the  above  form.  In  rewriting  his  original  paper  for 
publication  the  author  has  thought  it  best  to  strengthen  his  discussion  of  taxation 
"by  bringing  it  into  relationship  with  the  more  comprehensive  and  fundamental 
classification  of  monopolies. 

[774] 


^Bm 


Rei^ation  of  Taxation  to  Monopolies. 


79 


By  this  classification  every  recipient  of  the  distributed 
surplus  is  termed  a  monopoly;  it  receives  a  definite  portion 
because  it  possesses  a  monopoly  force  which  enables  it  to 
command  that  particular  amount.  The  preceding  pages 
have  sufficiently  explained  the  basis  of  the  division  of 
monopolies  into  differential  and  non-diff"erential  made  in  the 
classification.  The  non-differential  monopolies  may  with 
equal  propriety  be  termed  marginal.  The  fiind  firom  which 
they  draw  is  one  fixed  by  the  margin  of  consumption.  The 
former  include  lands  of  superior  fertility,  locations  of 
especial  desirability,  and  personal  intelligence  and  skill  of 
the  higher  order  possessed  by  undertakers  and  skilled 
laborers.  These  differential  monopolies  have  no  power  of 
exerting  any  influence  upon  prices.  They  simply  control 
the  distribution  of  a  fund  whose  amount  is  determined  by 
prices.  Prices  are  determined  at  the  margin  of  consump- 
tion by  the  forces  possessed  by  the  marginal  monopolies. 
These  forces  not  only  determine  what  the  prices  of  labor 
and  capital  as  a  whole  shall  be,  but  also  decide  how  much 
society  must  pay  in  order  to  secure  the  articles  which  are 
produced  at  the  margin.  The  non-differential  or  marginal 
monopolies  are  of  two  kinds,  which  may  be  described  as 
Optional  and  Exclusive. 

This  use  of  the  term  optional  being  new  in  economic  liter- 
ature calls  for  explanation.  It  includes  the  non-differential 
monopolies  enjoyed  by  individual  owners  of  land,  goods  or 
capital  and  labor.  Now,  as  was  stated  in  a  preceding  para- 
graph, each  one  of  these  three  general  factors  of  production 
possesses  a  monopoly  force  resulting  from  an  independent 
and  definite  law.  Capital,  as  a  whole,  can  command  a  cer- 
tain part  of  the  surplus  as  interest  because  men  value  present 
goods  higher  than  future  ones.  The  individual  owner  of 
capital,  however,  possesses  not  only  this,  but  an  additional 
monopoly  force,  because  of  the  fact  that  he  enjoys  several 
options  as  to  the  way  or  place  in  which  he  may  invest  his 
means,    and   because   he   always  has  the  choice  between 

[775] 


taemt 


III 


!     ill 


w 


■ti 

I  If 
\l 

\f, 

ill; 


.,i;) 

^ 
4 


im 


So 


ANNAIyS  OF  THB  AmKRICAN  AcADKMY. 


investing  his  capital  or  deriving  enjoyment  by  consuming 
it.  If  the  demands  for  capital  in  the  railroad  or  banking 
business  be  weak,  he  has  the  option  of  investing  in  a 
hundred  other  enterprises;  if  no  opportunities  for  investment 
offer  as  much  satisfaction  as  can  be  gotten  from  consuming 
the  capital,  he  will  choose  to  do  the  latter.  He  possesses  by 
virtue  of  these  facts  a  monopoly  force,  which  may  rightly  be 
termed  optional.  The  marginal  landowner,  likewise,  pos- 
sesses a  similar  optional  monopoly.  The  marginal  rent 
which  he  can  command  by  using  his  land  for  agricultural 
purposes  will  never  be  less  than  he  can  secure  by  changing 
his  farm  into  pastures  or  ranches.  The  rent  which  he  can 
secure  by  raising  wheat  will  not  be  less  than  he  can  obtain 
by  growing  com,  oats  or  barley.  In  a  similar  way  an  indi- 
vidual wage-earner  has  a  monopoly  force,  due  to  the  fact  that 
he  has  the  option  of  several  kinds  of  work.  The  option  is, 
of  course,  limited  to  the  group  of  laborers  of  which  he  is  a 
member.  He  does  not  have  the  option  of  entering  another 
non-competing  group;  but  within  his  group  he  may  choose 
between  several  kinds  of  manual  labor,  between  bookkeep- 
ing and  running  a  small  store,  or  between  many  other 
employments.  His  option  allows  him  to  command  the 
wages  of  the  most  advantageous  occupation  in  his  group. 
Reference  is  here  had  to  non-differential  wages;  if  the  person 
possess  greater  skill  or  intelligence  than  other  workmen 
doing  the  same  kind  of  labor  he  will  also  be  able  to  secure 
differential  wages. 

The  other  kind  of  non- differential  monopolies  was  termed 
exclusive,  because  they  represent  factors  of  production  that 
are  able  to  exclude  competition.  In  the  differential  and 
optional  monopolies  the  various  subjective  and  objective 
conditions  to  which  attention  has  been  called  bring  about  a 
restriction  of  competition,  but  not  an  elimination.  Land 
rents  and  personal  rents  are  competitive.  Marginal  rent, 
surplus  wages  and  interest  have  each  a  very  definite  maxi- 
mum which  competition  will  not  let  them  pass.     In  certain 

[776] 


*  f  I 


RK1.AT10N  OF  Taxation  to  Monopowks. 


81 


industries,  however,  it  is  possible  to  exclude  competition, 
and  they  thus  possess  an  exclusive  monopoly  force.  This 
exclusive  monopoly  force  may  be  possessed  by  a  business  as 
a  whole,  or  may  be  held  only  by  certain  branches  of  a  large 
enterprise;  every  complex  business  necessarily  includes 
many  factors  of  production  under  one  common  organization; 
some  of  these  factors  will  be  differential  monopolies,  some 
optional  and  others  exclusive. 

Exclusive  monopolies  are  classified  as  Private  and  Public. 
What  each  of  these  is  and  what  kind  of  an  income  each 
obtains  require  a  discussion  of  some  length.  Before  begin- 
ning this  it  will  be  well  to  stop  at  this  point  in  the  discus- 
sion of  monopolies  long  enough  to  bring  out  more  clearly 
the  relationship  of  the  foregoing  classification  of  monopolies 
with  the  general  theory  of  distribution  that  was  represented 
by  Figure  II  on  page  73.  The  following  diagram  will 
show  that  relation  graphically; 


:v->.t 


Frei  SurMus 


^"ife^iife^l -  — 

Costs 


^'^ 


F' .. 

4#' 

kM 


J 


FiGURK   III. 

The  exclusive  monopolies  are  here  represented  as  receiv- 
ing all  the  free  surplus,  they  being  of  two  kinds,  public  and 
private.  The  former  kind  will  be  discussed  more  at  length 
later  on;  it  is  the  monopoly  which  the  State  holds  in  her 

[777] 


jM.jm 


!! 


1 1, 


f'l 


fill 


II 


"•■   ! 


82 


Annai^  of  thk  American  Academy. 


taxing  power,  a  power  that  enables  her  to  take  of  the  surplus 
of  production  such  a  sum  as  she  may  desire.  Under  private 
exclusive  monopolies  are  included  those  that  are  able  to 
exclude  competition. 

There  are  several  means  through  the  aid  of  one  or  more 
of  which  an  industry  or  a  factor  of  production  can  exclude 
competition.      Legislation  affords  one  of    these   means   in 
granting  patents,   copyrights  and   charters.      The  charters 
granted  to  transportation,  electric  lighting  and  gas  companies 
often  furnish  the  only  condition  necessary  for  the  exclusion 
of   competition.       By  the  combination  of  capital  in  large 
amounts,  also,  competition  is  often  prevented.    The  operation 
of  the  trust  and  pool  is  well  known.     The  industrial  enter- 
prises, thus  combined  imder  one  ownership  or  management, 
may  consist  principally  of  the  differential  monopolies,  land 
and  intelligence  or  skill,  as  in  the  case  with  the  Standard  Oil 
Company,  or  the  businesses  which  these  unite  may  be  but 
secondarily  differential  monopolies,  and  consist  chiefly  of  the 
optional  class.     Land  may  be  required  in  but  comparatively 
small  amount,  and  the  employment  of  labor  and  capital  be 
necessarily  large,  a  condition  of  things  which  holds  true  of 
the  Sugar  Trust.    The  Standard  Oil  monopoly  was  made  pos- 
sible because  of  the  limited  area   of  oil  lands;    the  Sugar 
Trust  has  been   established   because   Mr.  Havemeyer  has 
great  sagacity,  and  has  had  command  of  very  large  amounts 
of  capital.     The  Sugar  Trust  has  driven  competition  from  a 
field  where  it  was  strong,  and  holds  it  out  at  present  only 
by  a  very  sagacious  management  of  large  amounts  of  capital. 
The  various  special  ways  by  which  competition  is  actually 
excluded  or  restricted  in  industry  need  not  be  dwelt  upon  at 
length.     Suffice  it  to  say  that  the  more  fully  competition  can 
be  excluded  from  an  industry  the  stronger  becomes  that  in- 
dustry's position  in  production,  the  more  is  it  able  to  check 
the  rate  of  its  increase,  and  thus  to  compel  society  to  pay 
liberally  for  any  rapid  expansion  that  may  be  desired  of  the 
business.  ^  The  slowest  increasing  factors  of  production  are 

[778] 


V 


I 


{J, 
( 


J 

4 

i 


REI.ATION  OP  Taxation  to  Monopouks. 


83 


those  that  are  able  to  exclude  competition,  in  other  words,  the  \     { 
exclusive  monopolies.    Theirs  is  the  industrially  strong  posi-    / 
tion.     The  differential  and  optional  monopolies  possess  forces 
which  give  them  definite  portions  of  the  producer's  surplus; 
the  exclusive  monopolies  obtain  these  portions  and  more;  to 
them  goes  the  free  surplus. 

As  Figure  III  indicates,  the  producers  on  the  margin  of 
production  obtain  none  of  the  fund  secured  by  holders  of 
differential  monopolies.  If  these  marginal  producers  possess 
only  optional  monopolies,  they  will,  as  a  class,  receive,  at 
any  given  time,  only  that  portion  of  the  surplus  which  the 
monopoly  forces  of  marginal  rent,  surplus  wages,  and  interest 
are  able  to  command.  The  individual  members  of  this  class 
of  producers  will  be  able  to  control  differing  portions  of  the 
fund  thus  distributed,  because  they  possess  options  of  im- 
equal  strength. 

If  the  holders  of  optional  monopolies  are  not  producing 
along  the  margin,  they  will  also  secure  a  part  of  the  differential 
fund  distributed  as  rents,  land  and  personal.  Any  producer 
or  business  having  only  differential  and  optional  monopoly 
forces  is  operating  in  the  realm  of  competition.  If,  however, 
the  subjective  conditions  controlling  consumption,  and  the 
objective  conditions  of  production,  to  which  reference  has 
been  made,  be  such  that  the  increase  of  any  form  of  produc- 
tion can  be  rendered  slower  than  the  rate  with  which  society 
enlarges  its  demand  for  the  products  of  that  particular  kind 
of  production,  then  the  producers  in  that  field  possess  a 
monopoly  due  to  the  exclusion  of  competition.  The  compara- 
tive strength  of  the  monopoly  forces  thus  held  depends  upon 
the  relative  rates  of  the  increase  of  those  factors  of  produc- 
tion in  which  the  exclusion  of  competition  is  possible.  The 
exclusive  monopolies  divide  among  themselves  the  free  sur- 
plus which  exists  for  distribution  at  any  given  time  in  the 
ratio  of  their  relative  strength. 

The  restricting  phrase,  "at  any  given  time,"  is  inserted 
in  the  preceding  sentence  because  the  different  portions  of 

[779] 


^^m  Kip 


fit: 


.11 


!  ;■ 


.; 


i*.' 


84 


Annals  of  the  American  Academy. 


the  fixed  surplus  change  in  amount  from  time  to  time.  The 
monopoly  forces  yielding  the  incomes,  rents,  interest  and 
wages  vary.  While  agricultural  rents,  for  various  reasons, 
are  falling  in  America,  urban  rents  are  rising  with  the 
growth  of  cities,  and  with  the  increase  of  economic  and 
social  conditions  which  give  to  limited  areas  great  value,  as 
business  sites  or  as  '  *  fashionable  quarters' '  for  the  residence 
of  the  wealthy.  The  differential  incomes  which  skill  and  in- 
telligence command  as  personal  rents  are  probably  increasing 
somewhat.  Surplus  wages  are  growing  with  the  rise  in  the 
standard  of  life.  Interest  is  doubtless  falling.  In  a  word, 
the  fixed  portion  of  the  producer's  surplus  is  a  definite  sum 
at  any  given  time;  but  changes  constantly,  and  is  at  present 
probably  increasing.  But  the  growth  of  the  fixed  surplus, 
as  a  whole,  does  not  keep  pace  with  the  progress  in  produc- 
tion. The  free  surplus  is  becoming  steadily  larger  as  society 
advances. 

The  free  surplus  has  been  shown  to  go  to  exclusive  monop- 
olies. At  present  the  monopoly  force  which  commands 
most  of  the  free  surplus  is  held  by  private  individuals.  It 
will  be  shown  directly  that  the  State  may  possess  herself, 
through  tax  laws,  of  as  strong  an  exclusive  monopoly  force  as 
she  may  choose  to  have.  The  income  derived  by  private  ex- 
clusive monopolies  is  one  with  which  economic  literature  thus 
far  has  not  dealt.  It  has  no  name.  In  the  classification  on 
page  78,  I  have  called  it  "tallage."  The  term  suggests  a 
levy  which  the  politically  or  industrially  strong  make  upon 
those  who  are  weaker.  According  to  Webster  the  verb 
*  *  tallage' '  still  means  * '  to  lay  an  impost  upon;  to  cause  to  pay 
tallage."  In  presenting  this  word  for  introduction,  I  have 
sought  to  coin  a  term  whose  meaning  suggests  as  much  of 
the  new  idea  as  possible.  This  tallage  does,  and,  at  the  same 
time,  has  the  advantage  of  not  being  in  common  use. 

It  was  said  that  in  order  to  explain  the  law  of  distribu- 
tion fully,  it  was  necessary  to  show  which  are  the  slowest 

[780] 


u^ 


Rei<ation  of  Taxation  to  Monopolies. 


85 


increasing  factors  that  obtain  the  benefits  arising  from  im- 
provements in  production;  and  second,  to  prove  that  these 
slowest  increasing  factors  are  also  obliged  to  bear  all  the 
permanent  burdens  that  may  be  imposed  by  nature  or  society 
upon  any  agent  of  production.  The  former  of  these  two 
tasks  has  been  performed  by  the  foregoing  analysis  and  clas- 
sification of  the  several  monopoly  forces  which  control  the 
distribution  of  the  surplus.  The  second  task  can  be  accom- 
plished more  quickly. 

The  statement  of  the  law  of  distribution  was:  The  free 
surplus  of  production,  the  benefits  of  improvements  which 
increase  the  free  surplus,  and  all  permanent  burdens  are  dis- 
tributed among  the  factors  necessary  to  production  in  inverse 
ratio  to  their  rates  of  increase.  That  the  slowest  increasing 
factors  of  production,  the  exclusive  monopolies,  must  bear  all 
permanent  burdens,  can  be  shown  by  either  one  of  two  lines 
of  argument :  The  factors  of  production  possessing  the  mo- 
nopoly force  which  makes  them  differential  monopolies,  have 
that  force  because  society  has  need  of  those  factors.  Society 
having  this  need  gives  the  differential  monopolies  enough  of 
the  surplus  to  cause  them  to  increase  with  sufficient  rapidity 
to  enable  them  to  supply  society's  wants.  If  an  added  bur- 
den be  permanently  imposed  upon  such  factors  and  a  part  of 
the  surplus  formerly  obtained  by  them  be  taken,  their  rate 
of  increase  will  lessen.  This  will  strengthen  their  monopoly 
force.  Society  will  lose  a  part  of  the  supply  desired,  unless 
it  increase  the  portion  of  the  surplus  given  the  differential 
monopolies  by  bidding  higher  for  the  products  of  these  fac- 
tors of  production.  The  same  is  true  of  those  factors  which 
are  optional  monopolies.  Both  kinds  of  monopolies  obtain  de- 
finite portions  of  the  surplus,  portions  which  are  safe-guarded 
for  them  by  the  monopoly  forces  whose  nature  and  basis  were 
outlined  above.  Society  does  not  give  these  differential  and 
optional  monopolies  all  the  surplus,  and,  as  long  as  that  is 
true,  these  factors  will  be  able  to  pass  the  burdens,  which 
may  be  permanently  imposed  on  them,  over  to  those  factors, 

[781] 


^^M£W 


^f-^'^&ifF' 


I 


I 


h 


!■« 


86 


Annai^  of  thk  American  Academy. 


a  part  of  whose  income  is  derived  from  the  free  surplus, 
and  is,  therefore,  not  insured  against  attack  by  virtue  of 
possessing  differential  or  monopoly  forces.  The  truth  of  this 
conclusion  has  been  excellently  shown  by  every  attempt  to  tax 
interest.  Capital,  possessing  a  monopoly  force  which  enables 
it  to  command  a  definite  portion  of  the  fixed  surplus,  is  safe- 
guarded against  the  burdens  which  taxes  may  impose  upon  in 
terest.  Such  burdens  are  inevitably  shifted  to  the  free  surplus. 
The  other  line  of  argument  by  which  the  same  conclusion 
is  reached  is  similar  and  differs  only  in  being  based  more 
directly  upon  the  phenomena  of  value.  The  industries 
receiving  none  of  the  free  surplus  can  bear  no  added  bur- 
dens, because,  if  such  burdens  be  imposed,  they  must  either 
raise  the  prices  of  their  products  or  lessen  the  supply.  If 
the  supply  be  kept  intact,  and  prices  be  increased  by  the 
amount  of  the  burden,  prices  of  other  products  must  fall. 
The  burden  will  be  shifted  upon  other  producers,  because 
general  values  cannot  rise.  Likewise  a  burden  falling  on 
an  industry  increasing  at  a  medium  rate  will  also  be  shifted. 
The  amount  of  free  surplus  which  such  an  industry  is  receiv^ 
ing  is  only  sufficient  to  induce  it  to  maintain  the  position  it 
holds  in  production.  Society  gives  it  a  certain  amount  of 
the  surplus  to  induce  it  thus  to  maintain  itself.  Unless  it 
can  shift  the  permanently  added  burdens,  society  will  find 
the  desired  supply  of  the  products  of  that  industry  lessened. 
Permanent  burdens  therefore,  rest  on  the  slowest  increasing 
factors. 

Taxes  are  one  form  which  a  permanent  burden,  or  requi- 
sition, upon  the  surplus  of  production  may  take.  Like 
other  burdens,  they  will,  after  they  have  been  in  force  long 
enough  for  business  to  adjust  itself  to  the  conditions  they 
establish,  falL  in  their  final  incidence,  on  the  slowest  increas- 
ing factors  of  production,  the  exclusive  monopolies.  Taxes 
thus  stand  most  intimately  connected  with  the  problem  of 
distribution  and  the  theory  of  monopolies. 

[782] 


. 


Relation  op  Taxation  to  Monopolies. 


87 


This  relationship  of  taxation  to  distribution  and  monop- 
olies can  be  considered  to  somewhat  better  advantage  if  the 
foregoing  classification  of  monopolies  be  somewhat  modified, 
so  that  the  fixed  and  free  surplus  will  be  more  definitely  con- 
trasted.    Thus  changed  the  classification  becomes: 


Monopolies 


Restrictive 


Differential 


Optional 


Exclusive 


{ 


FORM. 

INCOME. 

'  Ivand 
Personal 

Land  Rent         ] 

Personal  Rent 

flyand 
-I  Goods 

Marginal  Rent 
Interest 

Fixed 
Surplus 

(.Labor 

f  Private 
t  Public 

Tallage 
Fiscal  Taxes 

(Free 

Surplus 

There  is  only  one  new  term  introduced  into  this  classifica- 
tion— '  *  restrictive. ' '  As  was  said  above,  the  differential  and 
optional  monopolies  are  the  realm  of  competition.  The 
monopoly  forces  do  not  here  prevent  competition,  but  merely 
restrict  it  within  certain  limits.  The  forces  say  where  com- 
petition shall  have  sway.  The  exclusive  monopolies,  how- 
ever, exist  by  means  of  excluding  competition.  The  division 
of  monopolies  into  restrictive  and  exclusive,  therefore,  is 
a  rational  one.  It  is  a  useful  one  for  the  purposes  of  this 
paper,  because  it  puts  those  monopolies  to  be  discussed  into 
a  separate  class. 

In  entering  upon  the  discussion  of  taxation  we  ought  to 
keep  clearly  in  mind  both  the  relation  which  costs,  the  fixed 
and  free  surplus,  and  consumer's  surplus  bear  to  each  other, 
and  the  forces  which  control  their  changes.  In  a  progres- 
sive society  the  producer's  surplus  is  increased  both  by  a 
decrease  in  cost  and  by  a  rise  of  the  margin  of  consumption. 
The  line  which  divides  the  consumer's  surplus  and  pro- 
ducer's surplus  (compare  Figure  I.)  is  not  fixed.  Were 
the  margin  of  consumption  to  fall  the  consumer's  surplus 
would  grow  larger  and  the  producer's  surplus  would 
decrease;  if  the  margin  of  consumption  rises  the  opposite 
will  take  place.  Social  progress  implies  a  rise  in  the  margin 
of  consumption,  and  a  consequent  increase  in  the  producer's 

[783] 


'if  •-_— 


ti 


83 


Annals  of  th«  American  Academy. 


surplus  as  a  whole.  Furthermore,  as  was  pointed  out  on 
page  84  the  line  dividing  the  fixed  and  free  portions  of  the 
producer's  surplus  is  a  variable  one,  the  increase  of  the  free 
surplus  being,  at  present,  more  rapid  than  that  of  the  fixed 
surplus. 

Among  the  forces  which  have  the  power  of  altering  the 
relation  of  the  consumer's  and  producer's  surpluses,  or  of 
changing  the  relative  amounts  of  the  fixed  and  free  portions 
of  the  producer's  surplus,  are  tax  laws.  The  real  nature  of 
taxes  is  shown  by  the  changes  which  they  produce  of  this 
kind;  in  this  way  is  their  influence  on  consumption  produc- 
tion, and  distribution  indicated.  The  best  classification  of 
taxes  that  can  be  made  is  one  based  on  their  power  to  pro- 
duce such  changes. 

Classified  upon  this  basis  taxes  are  of  three  kinds,  fiscal, 
social  and  industrial.  That  may  properly  be  called  a  fiscal 
tax  which  takes  a  portion  of  the  free  producer's  surplus 
without  affecting  the  amount  of  the  fixed  surplus,  or  pro- 
ducing any  change  in  the  consumer's  surplus.  Such  a  tax 
has  no  effect  on  consumption,  nor  on  production  as  a  whole; 
it  simply  diverts  a  larger  or  smaller  part  of  the  free  surplus 
from  the  pockets  of  the  owners  of  the  slowest  increasing 
factors  in  production  into  the  public  treasury.  That  may  be 
called  a  social  tax  which,  although  it  falls  ultimately  on  the 
producer's  surplus — ^as  all  permanent  burdens  do—has,  for 
its  immediate  effects,  modifications  either  of  the  fixed  sur- 
plus or  of  the  consumer's  surplus.  Such  modifications  pro- 
duce social  effects  through  changes  in  production  and  con- 
sumption. That  tax  may  be  called  industrial,  which  is 
levied  for  the  purpose  of  so  applying  the  proceeds  of  the 
tax  as  to  increase  the  free  stuplus  by  more  than  the  amount 
of  the  tax.  A  tax,  raised  and  applied  to  the  improvement 
of  such  an  important  waterway  as  the  Great  I^akes,  would 
be  an  example.  An  industrial  tax  may  sometimes  take  the 
form  of  a  pure  business  transaction.  Such  will  be  the  case 
if  the  United  States  decides  to  sell  its  bonds  to  secure  capital 

[784] 


' 


i 


W&m 


RsifATioN  OF  Taxation  to  Monopowes. 


«9 


with  which  to  build  the  Nicaragua  Canal,  and  then  pays  the 
interest  and  principal  of  the  bonds  out  of  the  future  receipts 
from  the  canal. 

To  give  a  complete  presentation  of  the  theory  of  taxation, 
one  that  treated  each  of  the  three  kinds  of  taxes  ftiUy  and 
brought  them  into  relationship  with  the  theory  of  monopolies 
as  presented  above,  would  carry  the  discussion  beyond  the 
limits  of  this  paper.  From  the  sociological  standpoint,  the 
social  taxes  are  the  most  important.  A  great  deal  of  good 
can  be  accomplished  by  an  intelligent  use  of  them  by  the 
State.  Their  nature  and  influence  is  inadequately  recognized, 
they  demand  a  full  and  searching  analysis.  In  this  paper, 
however,  that  analysis  will  be  waived  in  order  to  direct 
attention  to  fiscal  taxes  with  the  purpose  of  answering  the 
question,  how  and  where  a  tax  may  be  levied  so  that  it  will 
yield  a  revenue  without  affecting  either  consumption  or  pro- 
duction, z.  e.y  without  having  any  social  effects. 

The  source  of  fiscal  taxes,  as  has  been  indicated,  is  the 
free  surplus.  The  objects  upon  which  such  taxes  ultimately 
fall  are  the  slowest  increasing  factors  of  production.  These 
are  the  exclusive  monopolies,  by  whom  the  free  surplus  is  ob- 
tained. Fiscal  taxes  are  paid  out  of  the  tallage,  the  income 
which  the  exclusive  monopolies  derive  from  the  free  surplus. 

A  tax  having  the  free  surplus  as  its  source,  and  the  tallage 
received  by  the  various  special  monopolies  as  the  objects 
which  bear  its  burdens,  may  be  so  levied  as  to  have  no  social 
effects.  This  levy  may  be  made  directly  upon  the  tallage,  or 
it  may  be  placed  there  indirectly  by  being  first  imposed  upon 
objects  having  the  power  of  shifting  the  imposition  in  such 
a  way  that  neither  consumption  nor  production  will  be 
modified. 

A  direct  tax  on  the  slowest  increasing  factors  of  produc- 
tion can  have  no  social  effects  until  the  tax  becomes  heavy 
enough  to  absorb  the  entire  tallage.  There  will  be  no  social 
changes  resulting  from  an  alteration  in  consumption,  because 

[785] 


liili 


I 


;■     :->  •,       ■       1 


:r-:-     'J:   iJ. 


v^nr:^..:..* 


-^.,1 


90 


Annals  of  the  American  Academy. 


the  absorption  of  the  tallage  by  the  State  will  not  affect 
prices.     The  products  or  services  of  the  exclusive  monopolies 
have  prices  so  fixed   as  to  yield  maximtun  gains,   hence 
these  prices   cannot   be  raised,  to   cover  the   tax,  without 
decreasing  the  gains.  (These  direct  fiscal  taxes,  however,! 
must  be  levied  upon  the  gross  receipts  of  exclusive  monopA 
olies  rather  than  upon  the  gross  product. )  If  every  product 
be  taxed,  the  exclusive  monopoly  may  find  that  the  point  of 
maximum   gains  is   to  be   reached   by  raising  prices  and 
decreasing  sales.     The  tax  on  gross  product  in  that  case 
would  not  be  purely  fiscal,  but  partly  social.     A  direct  tax 
of  this  kind  may  be  imposed  upon  tallage  without  diminish- 
ing production.     The  output  of  exclusive  monopolies  will  not 
be  lessened  nor  the  investment  of  capital  in  them  be  checked 
before  the  tax  absorbs  all  the  tallage.     As  long  as  the  exclu- 
sive monopolies  receive  gains  equal  to  those  which  they  com- 
mand as  possessors  of  optional  and  differential  monopoly  for- 
ces, they  will  prosecute  and  develop  their  business  activities. 
Fiscal  taxes  may  also  be  indirect.     This  can  be  shown  to 
be  possible  by  a  line  of  reasoning  analogous  to  that  employed 
to  prove  that  permanent  burdens  imposed  upon  production 
must  be  borne  by  the  slowest  increasing  factors.     Fiscal 
taxes  were  defined  to  be  those  which  take  a  portion  of  the 
free  producer's  surplus  without  affecting  the  amount  of  the 
fixed  surplus  or  producing  any  change  in  the  consumer's 
surplus.     An  indirect  tax  being  shifted  by  the  first  objects 
upon  which  it  is  imposed,  cannot  be  fiscal,  unless  the  tax  is 
shifted  from  the  fixed  to  the  free  surplus  without  lessening 
the  former  and  without  increasing  or  decreasing  the  con- 
sumer's surplus  through  changes  in  consumption.     If,  how- 
ever, a  moderate  tax  be  levied  on  a  factor  of  production  in 
which   competition  obtains,  /.  <?.,  on   a   differential  or  an 
optional  monopoly,  and  if  the  factor  be  one  whose  articles  of 
production  are  those  for  which  there  is  a  strong  and  stable  de- 
mand, the  tax  can  be  shifted  without  producing  social  effects. 
The  prices  of  the  articles  produced  by  such  a  factor  can  rise 

[786] 


I 


nnnrrtiti 


■i;fc.a>aBiBfcrt  I 


REI.ATION  OF  Taxation  to  Monopoi^ies. 


91 


sufiiciently  to  cover  a  moderate  imposition,  without  sensibly 
affecting  the  consumption  of  staple  and  strongly  demanded 
articles.  This  rise  in  the  prices  of  the  taxed  articles  will 
cause  a  readjustment  of  objective  values.  General  objective 
value  cannot  rise,  hence  the  value  of  some  articles  must  fall. 
The  articles  whose  price  will  permanently  fall  will  be  those 
produced  by  the  exclusive  monopolies.  They  are  the  slowest 
increasing  factors,  and,  according  to  the  law  of  distribution, 
must  bear  permanent  burdens.  The  shifted  tax  will  thus 
reach  the  tallage  and  be  borne  by  it.  Production,  however, 
will  not  be  affected,  as  was  shown  above,  unless  the  entire 
tallage  be  taken. 

It  will  be  seen  by  the  above  that  the  number  of  indirect 
taxes  which  are  purely  fiscal  cannot  be  very  large;  the  num- 
ber of  articles  whose  price  can  be  increased  without  sensibly 
affecting  their  consumption  being  relatively  small.  There 
are,  however,  many  staple  articles  whose  price  may  be 
moderately  increased  without  exerting  more  than  a  slight 
influence  upon  consumption.  Indirect  taxes  imposed  upon 
them  would  have  but  small  social  effects  and  would  be  chiefly 
fiscal  in  character.  The  legislator,  therefore,  who  is  desirous 
of  imposing  indirect  taxes  for  the  purpose  of  securing  a  reve- 
nue without  thereby  modifying  social  relations  to  any  notice- 
able extent,  has  ample  opportunity  for  realizing  his  aims. 

In  the  imposition  of  an  indirect  fiscal  tax  there  is  no 
ethical  question  involved.  Such  a  tax  is  a  purely  economic 
phenomenon.  The  tax  having  been  shifted,  by  changes  in 
prices,  from  the  fixed  to  the  free  portion  of  the  surplus,  and 
this  having  taken  place  without  sensibly  modifying  the  con- 
sumer's surplus,  the  ultimate  effect  of  the  tax  is  simply  to 
take  a  part  of  the  free  surplus.  Society  simply  prevents  a 
part  of  the  free  surplus  from  becoming  private  property. 
Without  the  tax,  the  entire  free  surplus  would  go  as  tallage 
to  the  owners  of  exclusive  monopolies;  with  the  tax  imposed, 
they  receive  a  sum  decreased  by  the  amount  appropriated  by 
the  public.    Society  has  the  first  claim  on  the  results  of  social 

[787] 


Miin^fcrifM^«*jf. 


11 


I  * 


92 


Annals  of  the  American  Academy. 


progress;  and,  in  the  case  of  indirect  fiscal  taxes,  the  State 
supplies  its  needs  by  a  law  as  purely  economic  as  that  gov- 
erning the  rate  of  interest.  Should  the  owners  of  exclusive 
monopolies  find  that  the  State  had  enacted  a  law  which 
diminished  by  a  certain  common  percentage  the  tallage  they 
respectively  received  they  would  have  no  grounds  for  com- 
plaint. The  tax  law  would  change  the  conditions  under 
which  they  must  produce,  but  all  would  produce  under  the 
same  conditions.  A  change  in  the  current  rate  of  interest 
would  produce  a  like  effect.  Questions  of  equity  and  justice 
would  arise  in  neither  case. 

If,  however,  the  State  does  not  in  this  general  manner 
divert  into  its  own  possession  that  part  of  the  free  surplus, 
which  the  public  finances  may  require,  before  the  same  has 
become  private  property,  but  allows  the  entire  free  surplus  to  be 
distributed  as  tallage  to  the  exclusive  monopolies,  then  the 
levy  of  taxes  may  involve  problems  of  equity.  Indirect 
fiscal  taxes  affect  all  individuals  alike,  in  that  they  modify 
the  conditions  of  production  equally  for  all.  This  cannot  be 
true  of  direct  fiscal  taxes.  They  must  be  levied  on  the  tall- 
age of  particular  exclusive  monopolies,  and  must  necessarily 
change  the  relation  which  these  monopolies  bear  to  each 
other,  and  alter  the  respective  positions  which  they  hold  as 
industrial  factors.  There  are  different  classes  of  producers 
enjoying  exclusive  monopoly  privileges  and  a  direct  fiscal 
tax  must  change  the  apportionment  of  the  free  surplus 
among  these  classes.  These  classes  are  of  various  degrees 
of  importance  to  the  economic  and  moral  progress  of  society. 
As  long  as  the  State  does  not  take  by  direct  taxes  all  the  tall- 
age obtained  by  these  different  exclusive  monopolies,  they 
may  rightly  insist  that  the  State  distribute  its  impositions 
among  them  with  equity.  The  only  true  basis  of  an  ethic- 
ally just  apportionment  of  the  surplus  among  these  several 
classes  is  the  services  which  they  respectively  render  society. 
Hence,  in  levying  direct  fiscal  taxes  upon  the  slowest  in- 
creasing factors  of  production,  /.  e.,  upon  the  tallage  of  the 

[788] 


5 


«     1 1   » 


Relation  of  Taxation  to  Monopolies. 


93 


exclusive  monopolies,  the  State  ought  so  to  distribute  its  im- 
positions among  the  several  kinds  of  exclusive  monopolies 
as  to  favor  the  respective  classes  according  to  the  economic  use 
they  make  of  the  free  surplus  received.  This  should  be  done  in 
order  that  the  larger  amounts  may  be  left  in  the  possession  of 
those  who  do  most  to  promote  social  welfare  and  progress. 
It  will,  of  course,  be  obvious  to  many  that  the  facts  of 
distribution,   as  outlined  in  this  paper,   and  especially  the 
theory  of  monopolies  here  presented,  have  important  bear- 
ings on  other  questions  than  taxation.     Probably  nobody 
regards  the  present  distribution  of  wealth  as  an  ideal  one. 
That  it  is  far  from  being  such  is  attested  by  our  desire  to  see 
it  made  better.     It  is  being  improved  at  present  by  the 
steadily  growing  strength  of  the  forces  which  give  larger 
shares  to  the  lower  ranks  of  producers.     As  these  forces  are 
made  stronger,  will  distribution  become  less  unequal.     The 
existence  of  dependent  social  classes  having  no  firm  standard 
of  life,  and  little  power  or  desire  to  raise  that  which  they  do 
possess,  is  cause  as  well  as  evidence  of  the  present  glaring  in- 
equalities in  distribution.     A  larger  sharing  in  the  results  of 
social  progress  is  to  be  secured  the  less  fortunate  classes  by 
improving  the  objective   and  subjective   conditions  which 
operate  to  raise  the  standard  of  life.     In  this  way  will  the 
monopoly  force  be  strengthened  that  gives  them  command 
over  a  portion  of  the  surplus.    Taxation  is  one,  but  only  one, 
of  the  forces  that  may  be  employed  to  further  that  end.    Fis- 
cal and  industrial  taxes  will  yield  a  revenue  by  means  of 
which  the  objective  conditions  of  life  may  be  made  better. 
Social  taxes  will  do  this  also,  and  may,  at  the  same  time,  be 
employed  to  effect  desirable  social  changes.     At  any  given 
time  the  surplus  of  production  is  distributed  by  definite 
monopoly  forces.      The  operation  of  these    forces   can  be 
modified  by  fiscal,  social  and  industrial  taxes,  the  nature  and 
operation  of  which  this  paper  has  attempted  partially  to  set 

forth.  Emory  R.  Johnson. 


University  of  Pennsylvania. 


[789] 


W^ 


»ii 


; 


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s  < 


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THE  AMERICAN  ACADEMY  OF  POLITICAI,  AND 

SOCIAI,   SCIENCE. 

The  American  Academy  of  Political  and  Social  Science 
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'X-:,^^0^>:^msssm^BSFM. 


'■:■•-■•■-  '^.y-^ 


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Iv-.'vt 


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ii 


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An  explanation  of  the  communal  system  in  TOgv*  in 
Russia,  under  which  the  peasants  are  now  slaves  oC 
the  mir  instead  of  serfs  of  the  seigneurs. 

35.  Statistical  Publications  of  the  Vnltatf 
States  Government l*o» 

WX.  F.  WUXOUSHBT. 

A  description  of  the  work  of  the  different  bureaus 
which  issue  statistical  publications  of  any  description. 

86.  Supplement  to  the  Handbook  of  the 

Academy 50c 

Contains  a  list  of  the  accessions  to  membership  in 
the  Academy  from  April  15,  1891,  to  August  10, 189L 

37.  Congress  and  the  Cabinet ISe. 

Gamalikl  BKADfOSn. 

A  plan  for  giving  members  of  the  cabinet  seats  \m 
Congress,  for  the  purpose  of  giving  advice  in  debate 
aud  answering  such  questions  as  the  Cougressmsn 
may  ask. 

38.  Place  of  Party  in  the  Political  System 
15c. 

Anson  D.  Hobsk. 
A  defence  of  the  party  system.         i 

39.  Recent  Tendencies  in  the  Refomt  o< 
Land  Tenure 15c. 

Edw.  P.  Chbtnet. 

The  monograph  shows  that  we  are  coming  to  recog- 
nize that  land  is  not  like  other  properties,  but  has 
intrinsic  peculiarities  which  necessitate  a  certain 
degree  of  communistic  control. 

4:0.  liaw-Mahlng  by  Popular  Vote 25c. 

E.  P.  OBEBHOI.TZBR. 

An  examination  into  the  number  of  times  the 
Referendum,  as  known  In  Switzerland,  has  been  used 
in  the  United  States. 

4:1.  Neglected   Points    in   the    Theory    orf 

Socialism .....25c 

T.  B.  Ybblbn. 

The  author  gives  reasons  based  on  political  economy 
for  the  existing  unrest  that  finds  expression  in  the 
demands  of  the  Socialists. 

42.  Basis  of  the  Demand  for  the  Public 

Regulation  of  Industries 25c. 

•*  W.  D.  Dabket. 

A  defence  of  the  theory  that  government  r^fulation 

of  private  business  is  the  best  remedy  for  the  existing 

evils  of  private  monopolies. 


43.  Study   of  the 
Government 


Science    of  Municipal 

15c 

F.  P.  Pricrabo. 
The  author  advocates  the  establishment  of  colleges 
for  the  training  of  men  for  the  public  service,  just  as 
the  Government  School  at  West  Point  trains  officers 
for  the  army.  Under  such  a  method  our  offices  would 
be  held  by  men  who  had  a  thorough  knowledge  of 
political  and  administrative  science. 

44.  Political  Organization  of  a  Modem 
Municipality ^..^.....15e. 

W.  D.  Lkwu. 

Dr.  Lewis  claims  that  the  reason  of  the  present  poor 
administration  of  municipal  affairs  lies  largely  in  the 
fact  that  National  affairs  obtrude  themselves  too  muok 
into  local  politics. 

45.  International  Arbitration 25«i 

Elbamob  L.  Lord. 
An  argument  for  this  mode  of  settling  international 
quarrels. 

46.  Jurisprudence  in  American  Universi- 
ties  15c. 

B.  W.  Hotfcot. 

A  plea  for  better  instruction  in  this  subject,  wit* 
an  outline  of  a  model  course. 


01^ 


\ 

* 


§M4 


■\.,..-J.Ay-     t-'Wfc 


:*gr;lg,  yj^ 


II Xi 


%.'.^TsaKa> 


:t-      •  r  '-> 


■^mam 


tfHHIHlta 


■I 


mmb. 


liUS^ 


mii 


B.52::; 


h 

I-' 


W 


^ 


'  1 


,•>'  ,     '' 


k  ■■• 


Pi 


V 


■I 


PUBLICATIONS  OF  THE  ACADEMY. 


4n.  Iiftfltractton 


In    Frenclk 


Universities 

- asc. 

Leo.  S.  Rowe. 
An  exposition  of  the  system  of  Faculties  in  vogue 
fai  France,  together  v,ith  a  brief  history  of  the  higher 
educational  system  from  the  time  of  Napoleon  to  the 
present.  It  also  explains  the  new  system  of  universi- 
ties  which  is  being  advocated. 


48.     Crrazlani's 
Macbiuery 


£cunomlc 


Theory     tit 

15c. 

Stuabt  Wood. 
An  analysis  of  the  economy  of  machines,  taking 
Prof.  Graziani's  work  as  a  basis  for  the  discussion. 

49.  StKical     Training     in     tlie     Public 
Scliools asc. 

Chas.  Dk  Garmo. 
An  argument  to  show  that  the  public  school  can  be 
made  an  important  factor  in  the  moral  development  of 
the  scholars. 

50.  Tbeory  of  Value „ 25c. 

F.  V.  WiESER. 

A  scientific  explanation  of  the  theory  of  value  as 
held  by  the  Aut^trian  School. 

61.  Basis  of  Interest aSc. 

*    .   .  DWIGHT  M.  LOWREY. 

A  criticism  of  Henry  George's  theory  of  interest. 
After  showing  that  this  theory  is  not  true,  Mr.  Lowrey 
points  out  what  he  thinks  is  the  true  basis  of  iuterest. 
5a.  EUectric  Street  JLigliting  in  Cliicai^o 
15c. 

M.  A.  MiKKELSBM. 

An  explanation  of  Chicago's  excellent,  but  cheap, 
system  of  lighting  her  streets. 

63.  Party  Government 35c. 

C.  Richardson. 
An  attack  on  the  idea  that  devotion  to  party  is  a 
political  virtue. 

64.  Proportional  Representation 15c. 

John  R.  Commons. 
A  plan  to  secure  representation  for  ihe  minority  as 
well  as  for  the  majority  party. 

65.  Australian  System  ot  Voting  in  Mass. 
25c. 

Snows  how  much  State  politics  have  been  benefited 
by  the  adoption  of  this  system. 

66.  Penna.  Ballot  Law  of  1891 25c. 

C,  C.  BiNNEY. 

The  author  shows  the  defects  In  this  law,  and  in 
doing  so,  gives  an  explanation  of  the  Australian 
System, 

67.  A  Tbird  Revolution 15c. 

Edward  P.  Chkyney. 
The  author  endeavors  to  prove  that  we  are  about  to 
undergo  a  third  revolution,  which  will  be,  as  he  shows, 
an  economic  revolution. 

58.  River  and  Harbor  Bills 35c, 

E.  R  Johnson. 
A  defence  of  river  and  harbor  appropriations,  show- 
ing  how   much   benefit  they   have  brought  to    the 
country. 

59.  Indian  Education 25c. 

F.  W.  Blackmar. 

Prof.  Blackmar  shows  that  the  only  salvatidu  for  the 

Indian  is  to  educate  all  the  Indian  children,  teaching 

each  some  practical  trade  or  profession,  and  after  they 

are  educatal  not  to  send  them  back  to  the  reservation. 

60.  Cabinet  Government   in  the   United 
States 15c. 

.        ,  Freeman  Snow. 

A  reply  to  the  arguments  which  have  been  advanced 
in  favor  of  adopting  in  the  United  States  a  form  of 
Cabinet  Government  as  known  abroad.  Cabinet 
Government  would  be  not  only  unconstitutional,  but 
also,  as  Prof.  Snow  proves,  highly  undesirable. 

61.  Scliool  Savings  Banks I5c. 

Sara  L.  Obrbholtzeb. 

What  and  how  numerous  they  are,  what  they  have 
and  what  they  will  acoomplJab. 


(im 


No. 

63.  Patten's  Dynamic  Beonomlcs 1S«, 

John  B.  Clark. 

Prof.  Clark  explains  this  late  system  of  political 

economy,  taking  Prof.  Patten's  receut  book  as  a  basis. 

63.  Geometrical    Theory   of   the    Deten 

miuation  of  Prices aSc, 

_,  ^,  Leon  Walras. 

The  author  presents  a  geometric  picture  of  tbi 

causation  of  all  prices. 

64.  Economic  Causes  of  Moral  Progresi 

a5c. 

S.  N.  Papten 
An  attempt  to  phow  the  causes  of  moral  progress 
through  a  comparison  with  economic  progress. 

65.  Sir  Wm.  Temple  on  the  Origin  and 

Nature  of  Governmeut asc. 

.....  ^    .  F.  I.  Hebriott. 

A  criticism  and  digest  of  Temple's  works  on  govem- 
ment. 

66.  Influence  on  Business  of  the  Indepen* 
dent  Treasury 25c. 

-.         ,,  ,  David  KiNLET. 

bhows  the  great  dangers  to  the  financial  stability  of 
the  country  that  are  inherent  in  the  "  Sub-treasury  " 
system. 

67.  Sidgwick's  Elements  of  Politic8...15c 

...  ^  J.  H.  Robinson. 

A  discussion  of  the  science  of  politics  and  the 
theories  current  in  that  science.  Prof.  Sidgwick'a 
recent  work  is  taken  as  a  basis  for  the  discussion. 

68.  Preventive  Legislation  in  Relation  to 

C'*>«« 15c. 

.      ,      -      ^^  C.  H.  Rbevk. 

A.  plea  for  the  suppression  of  crime  by  thorough 
preventive  measures. 

69.  Effects  of  Consumption  of  "Wealth  on 
Distribution 35^ 

,  .^,         .  William  Smart. 

An  exposition  of  the  effects  of  the  consumption  of 
wealth,  with  an  argument  for  the  socializing  of 
consumption  and  throwing  wide  the  doors  of  wealth, 
that  humanity  may  enter  in  and  enjoy  much  of  what 
the  individual  now  consumes  in  solitude. 

70.  Standard  of  Deferred  Payments  ...15c. 

.  ^.^    ,  , ,  Edward  A.  Ross. 

A  scientific  delencc  of  bimetallism. 

Tl.  Parliamentary  Procedure 25c 

.  ,        .  .  Jesse  Macy. 

An    explanation    of    the    difference    between   Um 

English  and  American  systems. 

72.  Social  Work  at  the  BImpp  Foundries 
25c 

4  ,       ..         ,  .,  S.  R.  Lindsay. 

An  explanation  of  the  work  that  has  been  done  at 

these  foundries  to  better  the  condition  of  the  laborers. 

73.  Local  Government  of  County  Com- 
munities in  Prussia 155, 

.  ....  Conrad  BoRNHAK. 

An  exammation  from  an  historical  and  a  political 
point  of  view  of  the  character  of  the  reforms  which 
were  brought  about  in  Prussia  by  the  passage,  in  1891 
of  two  local  government  acts,  which  put  an  end  to  the 
last  remains  of  the  feudal  system. 

74.  Cost  and  UtUity 35^ 

m,  ^  ,  ^^.  S.  N,  Patten. 

yt^^  purpose  of  this  paper  is  to  make  the  reader 
more  conscious  of  the  contrasts  involved  in  th« 
development  of  the  two  radically  different  ways  of 
investigating  economic  phenomena,  whether  as  a 
theory  of  prosperity  or  as  a  theory  of  distribution 
and  value. 

75.  Alcohol  Question  in  Switxerland..l5c 

Xhe  paper  shows  what  has  been  done  in  that  countn 
along  other  lines  than  those  of  prohibition,  towant 
preventing  the  misuse  of  intoxicating  drinks,      -i^ 


'\ 


ti! 


JPUBL/CAT/ONS  OF  THjS^.  ACAUBMY, 


IP*.  a«ll«n>aB'fl  Sbin>n%*  *»d  Xn-cldentw  itf 

1'*aB«.tWtt - ''*^C' 

A  mmtti^  of  the  cubject  *fi  v«Tati<Mi,  tiiklogr  i'.^t 
S«Iisio«Jo'»  recsfit  oook  as  a  basbj  fikr  the  UiBOB&siDo. 
77.  Psyf:ho)o|!;i<c    Haitis  4>f  Social    Koono- 

M*tea. .,...-..    .  85c. 

Lmtsr  F.  Ward. 

I^e  Ohfect  of  thlv  paprn:  ia  to  emphasise  the  d^»> 
^v»ii,\^^  bctwaett  (hat  ey»tMJU  of  noiitictai  ecoaoriy 
,  irhiuh  k»  basod  u  t>oo  the  actions  of  the  human  anlTual 
ar  i  th&t  i/ifeeAii  wWoh  is  baaed  tipoo  th«  acticus  of 
Uwra^ioosJ  xn^iL. 
y«.  'I'hMity  of  Fluad    Utili^  in    lis   Kx;« 

lation  to  th«  St^adiurd  of  DeCbrr«d  P»y« 

J.I.  S.  MsnBiAK. 

A  »ttMljr  >f  the  relation  of  U»«  theory  of  linaJ  iitiHty 

tonioiKfty  in  ^.tr^ncriu  \vA  the  stAndsti  of  dfierr«d  Pi  y- 

TQ^ttfe  in  pan.i(n»var,  ioiio^ved  oy  a  cricioism  of  VvA. 

Ihns' IM|p«r  on^tha  *♦  8t«ndayd  of  Deferred  Peymeott. " 

Ti).  l;«>a»tltMittoA.  of  Coi<«mbia. KOc. 

Bbevaad  Mosrs, 
Xr4iwv»«t-lcm  of  the  ^s.t,  ^Ith  an  UiBr^thcai  introduo- 
tlott.     ^ 

ti'OU  Katioxuil  andi^tatc  itanks 25e. 

HORAOI  Whi'-b. 
A  phm  for  continuing  the  uation&l  bn  u  ii-note  systeai , 
without  boukJ  a*«ifrity. 

81.  Annertcau    Banlt^iu^   and   the    Bfouitjy 

t^upply  4»rflro  Fuiur* lac. 

M.  IJ.  Ha&tbk. 
'  A  brief  »k«tch  of  American  banking  hi"»tory  with 
aa  ontlook  ictn  t>'.e  fat  are,  followed  by  a  plan  for  ra- 
fcqganJaiiig  the  utt'J-nid  bwiking  Bjstem- 

K9.  StMi<nMUd  Natioikal  Bank  Circulation 

A.  B.  Hispunaw. 

Aa   at^mmeat   sgaiost    iatnlt/j?    oii-cuUtian    notea 

*!fchoiit  li.  S.  bond*  o?  othoi-  choice  eoourif  its  as  their 

i»a«i£. 

«3.  BatililUK  Syftena —Old  *nd  If cw ...  »r>c. 

J,  H.  W.M.1KR. 

k  pioa  tot  Uie  »df)pfcHia  of  the  Vrnkinsj  syfteai  out- 
K\u-A  in  Mr  Walker'^  b.ll  before  Congresw. 

»4.  Basis  tit  SfMiurity  for  Kntlonal  Biuic 

BJotea... l&c* 

^2  HjcsevBajoh. 

A  ^>lan  for  parpetuatlng'  the  n^tioual  bauK-isote 
eytitsin. 

.>*&.  %^^e\^\rk.%  Cjai.vi;)  of  I..al>or,... ...10«i> 

J.  B.  OLAac, 
An  urpinifa  t;j  nhow  t U.'iS  ihe  lal)Oi-«r  does  not  rf-aUte 
\  &u79ius  gaii)  fron.  the  lat^c  'ab*.)!  perfotaied  in  a 
iiituial  wotkinyr-day. 

80.  Cmifttitniionai  and  OrKaaLio  JLavTA  otr 

F ran**^,  i  8Tfi-1889 ;. ..., ftOc. 

C.  F.  A.  OuaniBK. 

rTani%]8Xioi)  of  ihe  taxi,  with  an  historical  iatro^lac- 
tiou  iU'd  uct  i*. 

t7.  Relation   of  tho  8tat<    to  K&acatton 

la  BSn^laxvd  and  Airiorica .« /)dc. 

laiAC  BoAcri-JBtw. 
.\    cor.paitr c.ii    V)etwoen   the    Hoglish  educational 

syalioza  atvi  tje  Anse-'icau,  w;'th  sj-kjcUI  referen  vi  to 

tha  i«4.rt  tak«;a  t?  the  g;over/:iineu£  in  regx.Iatiiifj  thfc 

uyialeuu. 

%fi.  C»Mr  Fa4lare«  Ijii  Municipal  tto-rem- 

!at*Mi J,. ....13c. 

QAMAJilXb  BBAl)r)Sl.>. 

A  cofninirlitoTi  l^tvcea  rsnjjliali  aa4  Ameroan 
raan"r,ii*4l  govoriimwit. 

?*;j.  Co«t.*m*{.  mxp«i<i»«>! W5c, 

Siiitow  Bf.  I'ATTjy? 

Coi  i.".^!;.  ■.t;fc  two  %f.xta.s  dud  tbo  IdebA  tfcey  sliould 
*n  ?ftj .    A  w^afclu'aa:'on  of  ;Vo>  74- 


Sl 


w 


*>3,    l»**oicre*«> 
Frantic 


9U.  Home  fi^.tite  for  aiar  .AnkCirlcan  Ci&iat 

, .    .., ; %iic 

BLLIS  p.  OaKHOOtLTUtlB. 

An  urgumet^t  kgamst  f.he  creation  and  consteat 
amendment  at  cit^  charters  by  State  I«.><^U^QI«ftk 
In  liea  of  ttds  it  if  ^opoeod  to  have  cltus  ounV?*? 
thorn leWo?  Qji<ler  a  gou^ral  coiUitiluta<.)>a)  cld^vtsat 
perniitUn^  them  to  ado][tt  and  atB<.i;J  l£.air  onra 
charters  bj  popuiur  alectica. 

01.  Relatiuu  uf  ITiConouUv  Condittona  im 

ti&e  Cavuea  of  Criuie ii6«. 

Cucao.!.  D.  Wb  aiw. 
A  atady  of  tlie  Uiaring  eoocoaiti  eoa(;Li;!<^/ua  \:»f* 

opon  criaie,  ff llc'Wfd  by  cuijiefiCi.iiB  of  pians,  wMsK 

if  adi'pt-ed  will  it»'jac  cjime, 

IMS.  Nature  of  tJiu  Federal  State a5o. 

E.  V.  2tovR«»oii. 
Att  argument  to  show  that  tiiu  ?••  imi*',  latiioiM  ika 
truly   aUblv  St.ivd,  elnne  it  alouo   •  <  bjltt  t^a  ta» 
fft^rsal  rook  of  natural  law- 

(»r    Eeonomi«    1«1c>a«    f« 

An  acroaijt  of  the  'ievelopment  ;u  Pruic.^  uf  .ae 
ecienc*  of  political  e'cnony,  txeatiug  in  t..rT;  the 
Phybi  Kr^Ts,  :\  e  Classical  School,  tti-'.  Su<jialist.*,  the 
ProteotioT.ist^,  the  school  of  I*  ?lay  and  the  modem 
econouiista. 

04.  RelatioM  of  E«*oaomlc  Study  toPnHlie 
and  Private  1Jt*»»"Jty ~ aa**. 

James  BLkVMt 

The  purposti  stc  Jho^  how  the  study  «;f  eoonoTiiea 
may  he  luadt?  tf  use  In  the  piacwirul  w.ik  of  ""  '  "7 
with  the  problems  of  pivorty.      In  ricinc  "  \t 

authrsr  gives  ;'>j  iiocount  of  the  leading  m.';  t.Ji  tka* 
have  been  ose-1  to  ,n\!dy  poverty,  and  of  t.i'  ;  l«n»  t-irg. 
ge«t«d  to  help  a joIi«h  poverty. 

05.  Monetary  Sitaalloiiii  lu  C9r?nniiy...Me. 

WA::xHAa  Loia. 

At  explanation  ot  wh?.t  thetlennaa  i.ionetHry  «5«» 

tem  is  and  how  Geriuuay  came  ioa'.'0][>c  the  ^old  l>at>^!>. 

tojt'ither  Willi,  an  aTgumeut  to  shuw  that  tJermaiij 

mcst  stand  tv'  tlie  single  i^old  standard. 

9<J.  Vae  of  Oliver  &s  Jloury  in  th«  IT.  -^    '  •  r 

A.Ji.  W 
AhiestOTyot  Ai.eHctin  Roinaare,  wUh  *•  -    ». 
ence  ia  ^U>•f)r,  fro  0  tiie  dnt^  of  t'^ft  hrnt  <■  i. 
the  pasfage  i>f  tta  mj  (»]I<id  She'-a.\n  Act  in 
au:n'.)er    of  ch.trtd  and  talAca  are  apji'-U'laJ 
I   lufonaatli/u  ix<y«  given  in  detail  in  the  i*Rper  itacil' 

!   tf7.  Taxaiiicn  of  I<arffc  Ratatea. 

y 

j       A  plan  to  pr'iv^nt  rich  men  from  t 

\  iuring  life  or  to  make  them  f«j'  up  »,f 

(  v>re»te  a  5iptH!ia}  i->.>ard  or  conmil  vh-  /  it  slia '. 

i  b<>  to  derotd  the  pvo«^ee<Jfi  <>(  all  Iiiiier;  i  i? -a  ti\xe«  to 

I  tlio  work  of  making  &o.iety  better  and  h&pj.iei . 

»«i.  Fi>^t  8tate  I  oascltutiona.. »5c. 

j  T'le  purpose  of  the  paper  la  t/)  fchow  ho*  tie  <  irvj  • 
,  law  a  of  tlie  colonies  wcrv  irnns.-ited  i:.to  ilto  cot  rita- 
I  tiou^cf  tiie  orijmai  St4*tos,  which  pwc**.^  W!w  »h  .> 
second  staij^  ia  the  gi-owth  of  American  c.  t>Rtirutiot.i\ 
1  law.  The  ILrr.t  gTu,grt  c.f  this  gniwti)  wi-j  v;ii<;vi»»tj<J  '</ 
I    Frofeaeor  Morey  in  No,  ly, 

•9.  ?ff.iirrl«iJ  IVomen'-*  Fropt'r^y  iix  A^mufX^' 

i  4  »ir,ndy  of  the  ori/fiu  ei:d  growth  of  tiic    '       ..\mL- 

[  tiei.  in  n:«pe(r  to  owuii'^  t'^'^l'*'*''^'  nud'.^r       .        iij-^r- 

i  nod  V  ouneis  weiuvi"c«i '  until  withinvuostixx^^atytgue. 

I 

t    100,  P«ontiof  «h«>  <ionih .    ...  ..         •,  . 

'       Shjwshow  1  Jv««  eouf;;if-n>  far    ■'  w  n; 

:    bon'Jiv^t*  by  t.'ie  niercitaivt.  by      -    ...      '.   t.  r   ^     9 
h'.JjT',  todovpto  L'«  €n«rgi*v  to  raiiiin;^  .^>tr'U  ■t.s.f-4l  vf 
I    otJiP'  CT.>nit  w'.ioK  would  be  inov  '>,»v',f '"v'  »•-.  ^,. 
!  fai'.  ■- 


3,i 


1;  ^,»^ 

jr.  Cowttrf. 

caplug  taiee 

■;.  -i  i  autl  to 


INTENTIONAL  SECOND  EXPOSURE 


ttm 


PUBLICATIONS  OF  THE  ACADEMY. 


jPUBUCATTONS  OF  TI/^  ACA/^EMY. 


47*  iBfltmctlon 


In    Frencli 


Universities 

asc. 

.  .  .  Leo.  S.  Rowe. 

An  exposition  of  the  system  of  Facultiea  in  vogue 
in  France,  together  v.  ith  a  brief  history  of  the  hijjher 
educational  system  from  tlie  time  of  Napoleou  to  the 
present.  It  also  explains  the  new  system  of  universi- 
ties which  is  being  aUvocattd. 


48.     Graziani's 
Machinery 


Economic 


Theorj'     of 

15c. 

Stuart  AVoon, 
An  analysis  of  the  economy  of  macliices,  taking 
Prof.  Graziani's  work  as  a  basis  for  tlie  discussion. 

49.      E:t]iical     Training     in     tlie     Public 

ScllOOls  5354.. 

Chas.  Dk  Garmo. 
An  argument  to  show  that  the  public  school  can  be 
made  an  impoitant  factor  in  the  moral  development  of 
the  scholars. 

60.  Theory  of  Value „ 25©, 

P«  V.  WlESER 

A  scientific  explanation  of  the  theory  of  value  as 
held  by  the  Austrian  School. 

51.  Basis  of  Interest jJSc, 

.      \^.    .  DWIGHT  M.  LOWREY. 

A  criticism  of  Henry  George's  theory  of  intere5=t. 
After  showing  that  this  theory  is  not  true,  Mr.  Lowrey 
points  out  wliat  he  tliinks  is  the  true  basis  of  iuterest. 

52.  Electric  Street  JLighting^    in  Chicago 
• ••.... ^  15c. 

M.  A.  MiKKELSEN. 

An  explanation  of  Chicago's  excellent,  but  cheap, 
system  of  ligliting  her  streets. 

53.  Party  Government 25c. 

C.  Richardson. 
An  attack  on  the  idea  that  devotion  to  party  is  a 
political  virtue. 

54.  Proportional  Representation 15c. 

John  R.  Commons. 
A  plan  to  secure  representation  for  ilie  minority  as 
well  as  for  the  majority  party. 

65.  Australian  System  of  Voting  in  Ma$s. 

25c. 

o-        ,  ^  «  R.  H.  Dana. 

bhows  how  much  State  politics  have  been  benefited 
by  the  adoption  of  tliis  system, 

56.  Peuna.  Ballot  Law  of  1891 25c. 

C.  C.  BiNNEY. 

The  author  shows  the  defects  In  this  law,  and  in 
doing  so,  gives  an  explanation  of  the  Australian 
System. 

57.  A  Tliird  Revolution iSc. 

Edward  P.  Chkyney. 
The  author  endeavors  to  prove  that  we  are  about  to 
undergo  a  third  revolution,  which  will  be,  as  he  shows, 
an  economic  revolution. 

58.  River  and  Harbor  Bills 35©, 

E.  R  Johnson. 
A  defence  of  nver  and  harbor  appropriations,  show- 
ing how   much   benefit  they   have  brought  to    the 
country. 

59.  Indian  Education 25c. 

__,_,,  ,  ,  F.  W.  Blackmar, 

Prof.  Blackmar  shows  that  the  only  salvatinn  for  the 

Indian  is  to  educate  all  the  Indian  children,  teaching 
each  some  practical  trado  or  profession,  and  after  they 
are  educated  not  to  send  them  back  to  the  reservation. 

60.  Cabinet  Government    in  the   United 

S*»*«» 15c. 

.        ,    .      ,  Freeman  Snow. 

A  reply  to  the  arguments  which  have  been  advanced 
m  favor  of  adopting  in  the  United  States  a  form  of 
Cabinet  Government  as  known  abroail.  Cabinet 
Government  would  be  not  only  unconstitutional,  but 
also,  as  Prof.  Snow  proves,  liighly  undesirable. 

61.  Scbool  Savings  Banks I5c. 

^f..  Saha  L.  Obeeholtzeb. 

Wnas  and  now  nnmerous  they  are,  what  they  have 

"■^  — **  what  they  will  accomplish. 


No. 

62.  Patten's  Dynamic  EU$onontl«8 ISd, 

T>    *    y,,    ,  John  B.  Clark. 

Frof.  Clark  explains  t'lis  late  system  of  political 

economy,  taking  i'roi.  Pacten's  receut  book  as  a  basis. 

63.  Geontetrical    Theory    of    the    Deter« 
mination  of  Prices jjs©, 

-,,^      4.U  .  LbonWalras 

The  author  presents  a  geometric  picture  ol  the 
causation  of  all  prices. 

64.  Economic  Causes  of  Moral  Progress 

25c. 

\^    **        i  X     ,         .,  S*  N.  Patten. 

An  attempt  to  .show  the  causes  of  mnral  progress 
through  a  comparison  with  economic  progress. 

65.  Sir  Wm.  Temple  on  the  Orictn  and 

Nature  of  Government .       25c. 

.....  ,  ,.  F.  I.  IIebriott. 

A  criticism  and  digest  of  Temple's  works  on  govern* 
ment. 

66.  Influence  on  Business  of  the  Indepen- 
dent Treasiu-y .^5c. 

ou        .1-  .  ,  David  KiNLKT. 

bbows  the  great  dangers  to  the  financial  stability  o< 
the  country  that  are  inherent  in  the  "  Sub-treasury  » 
system.  "' 

67.  Sidgwich's  Klemcnts  of  Politics...l5c. 

.,..,,  J.  H.  ROBIKSOK. 

A  discussion  of  the  science  of  politics  and  the 
theories  current  in  that  science.  Prof.  Sidgwick's 
recent  work  is  taken  as  a  basis  for  the  discussion. 

68.  Preventive  Legislation  in  Relation  to 

^'*«»« 15c 

.      ,      -     ^,  C.  U.  Rbbvk. 

A^  plea  for  the  suppiession  of  crime  by  thoromrh 
preventive  measures. 

69.  Effects  of  Consumption  of  IVealth  on 
Distribution 35^ 

.  .^.         .  William  Smart. 

An  exposition  of  the  effects  of  the  consumption  of 
wealth,  with  an  argument  for  the  socializing  of 
consumption  and  throwing  wide  the  doors  of  wealth, 
that  humanity  may  enter  in  and  enjoy  much  of  what 
the  individual  now  consumes  in  solitude. 

70.  Standard  of  Deferred  Payments  ,..15c. 

.  ^.^    ,  Edward  A.  Ross. 

A  scientific  delencc  of  bimetallism. 

71.  Parliamentary  Procedure „ asc. 

.  ,        .  -  Jesse  Mact. 

An   eM>l!»narion   of    the   difference   between   Um 
English  and  American  systems. 

72.  Social  Work  at  the  Krnpp  FonndHci 
25c. 

4  1       .^.         .    ,  S.  R.  Lindsay. 

^\n  explanation  of  the  work  that  has  been  done  at 

these  foundries  to  better  the  condition  of  the  laborers. 

73.  liocal  Government  of  County  Com- 
ntunities  in  Prussia  m« 

.  .      ..         ,  ,  .  COSBAD  BOBNHAK. 

An  examination  from  an  historical  and  a  political 
point  (.f  view  of  the  character  of  the  reformrwhich 
were  brought  about  in  Prussia  by  the  passage,  in  18^1 
of  two  local  government  acts,  which  put  an  end  to  the 
last  remains  of  the  feudal  system. 

74.  Cost  and  Utility aSc. 

S   N  Patt"«m 

The  purpose  of  this  paper  is  to  make*  the  reader 
more  conscious  of  the  contrasts  involved  in  the 
development  of  the  two  radically  dilferent  ways  of 
investigating  economic  phenomena,  whether  as  a 
theory  of  prosperity  or  as  a  theory  of  distributiOD 
aud  value. 


75.  Alcohol  Q,nestion  in  Swltzerland..l5c« 

rhe  paper  ghowe  what  has  been  done  in  that  countn 
along  other  lines  than  those  of  prohibition,  towant 
preventing  the  misuse  of  intoxicating  drinks.      «^ 


i 


1 


Ho. 

TCv.  »«l»«;«t*.n's  Slbif?.vA^-  aird  Xr»tJl<t*mMc  of 

*ji'*3a«.ti«"'i» ..•■ifto 

ilv»w.  A.  R<  <«. 
A  tc!;i«';?i€  af  ^ht»  itti'ii.ct  o-   ^,irst*^im,  tiiilc?:  t'.-of. 

IT-  P;<ye:ho1(ou,l»;    ita^ia   •>r  Social    Koono- 

.)m1cs >85c« 

LtfTSR  F.  Ward. 
i>.«  ahj«''t  0!  iihii!  ti-jyer  is  v-i  <HfipVu>l4v  t'le  d.'.»- 
(i!>.4;&'.;^<u  tietwwjrt  Ithat  syst-nm  •>)!  poiitic-AJ  c'MVSiVtj 
t»fiu:L  ii!  iiftd'^d  u.ton  ti/e  actioiU;  cf  t.^9  hamarA  aniuial 
ardthv  f..  ita.u  whloh  »^  bai»l  •■;>0D  '-ii'9  «otu.  •  of 
Uier».'iooaj  m«t.. 

»««  TlAeoiy  »r  F*T»al  UiiVity  u%  >t»  ir  i- 
lAt&oia  to  ^li*  St*n<kardL  \>l'  Dt-fcrxod  l»itv  • 
lisafittts •••• .... %'?«:• 

J(.  {.V  MS««IAM, 

A  'jLuUy  }\  the  r*iatiou  of  thn  th<;oiy  of  UnsJ  ut!!'ty 
totij-jofly  in  t,.v.!Ciftt  >j.fi  .')«i  stAicAii  of  «?<»'.:«prt;=J  P.  y- 
wei.f.  h\  p.-.  r./.oui!u.  tyilcvoo  ay  n  crijioifrve  0/  Vv.l. 
.H«2v' pdtrer  ott  tb».i " ^tav*d8i-d  cf  i)ef4irr<»d  .*  tiTOieotv. •* 

tlJ.  ConiPtttw%.10M  «!«■  CoiS-wiKOiit ..wO<., 

Cl>An/  ''jik'tt  of  the  )».\i,  ^Ith  lu*  h'jsr.iricai  i-ifc.'rxju-j- 
tktu.      ^ 
t'tf.  .Katiottf.l  luml  f«rai«   i^fc.ks.. JJ.^v., 

A  plan  fnr-iOi-.tiDiJ'ci  vaa  '.ifttioi.i',1  b!»-»i-rot.e.s>s^>u.', 
without  h.>uOLa»!cirity. 
81«  Ar««>«*c*M    JBanliltucr   ftwtl    the   Ho.v.  j 

.  S-Mjuuiy  •.»!'  tksr   Vxi%  <i«  •» .,., loc. 

M.  1>    HA^T■-• 

A  hr«f  *k'.*ri  '(i  ■-£  .!>.U!.»)i<siJ  bankioj;  h^'^fory  ri-.-. 
»a 'WMook  ittrt  '<''.«  fi'iiii'j  loU'.wtd  bj'  A  jiliji  for  r.^- 
4»ri»ar.:'J».'!|  the  nu'i  •ri..ll.a>.  KTm^; ;  /*t<sHi 

JIa  at.'VioiO'it  sgaicst  ismit^u/  Oiicali'ian  nx^'^AH 
•!tiso;;t  l; .  J;.  bomij  oy  othi)  cl;ck>e  f-  .-^uili.'te  as  thejv 
2*a»i£. 

e».  'ilutil&in^-'  •■lyvtf.u—Ohi  •  m J  T«».'w...  5."»« 

.«',  1-4.  'v7.'.  i.BK.;. 
h  k)u>a  for  U  e  er.<.pta.i   •f  the  1  Uilroj  ,':yi-;«,Trt  0»i  .- 
Uu  «I ja  JJ.'  Wttlke/'*'bi!l  Vi-fute Coi.),"''?'- 
i*4-.  HasIa  rtf  -?'*'.: tttUy  lv»r  ITnii.wial  Bt ».•■;: 

fljOlfS ..,  .  . -'ivl'. 

A.  I'Jan  fc»    v*'l'<'^'"*f'^e'   ^'^'^  'n,»tiO«iGT    baui'-j^ote 
eyaleiiri. 
N5.  ^fc  irj,  fK '.  ?>ia4.w:3of  i.-ifchcn- 15*. 

\  *ii/oJu8  )?;»•.>>  froiL   6ln'  fdjiC    ■xo'.ir  i&'ti-^ocnied  in  •» 
iktijai  votl'-iuvf-dftv. 

J'TaU'.H'^  »'<7S-<8*jf» ■.  ., ....r»0«. 

rrsnr.is.Uo!.  of  ihe  tb<t,  vLthe-Ti  JiistoricaJ  '  jt,rc^'a:' 

i?T-  Rtlatlt^Ji  of  th«-s  Statf  to  KtiucatJikrjt 
In  ii;f»jrHv;«»l aud  A«!#.f?rlt%  ...,.» JlSc. 

A  cor^i)«ri.  M»  betwo^n  t)te  Kujjlrub  ,?a'icatior»» 
svHl,eia  M\\  t'-ie  .'•.a/j.««.;Hj,  v.tii  !y.v<'n;»l  r?f»'eii  m  10 
tM  f'.i/t-  tak»  :.'  I  » f;ha  ?,ov'ii.ii:noii;  in  ?';8i.'.wfh'4|i  tu^ 
ay.»i.B.)n. 

'%fi.  «'»fir  i^tt-i'i«4r<tu  Jm  5Sni»4clp».'i   r«!t>vi;i'«- 

»t-r«.i»t ,.., i,;.t,. 

(3 « j-fAJ. .  ;j  c  l»a a:  >*  >e i '. 

A  cou-.j>t»-JiiO's  U-t'c^o  ri'ii^jiiiiit  ind  K.txbx.itkix 
raan  .fipa*  g'D  ?<:■ :  r.  m^ihi  t 

fill.  Cf.«5f.  AXUv.  1cl'*i>«ivfc»* '45*!, 

C.M-^toi«tf'  '.iit  tv/>>  t"rm:i  ji.d  tho  ;ii.'fi.',  :.•;«/  si 3ij;d 
*n^i'>.     A  w;it*na»::'t'ii  af  ..Vo,  *'4. 


&U,  HooK«   !  ''.«i.l«  1t<f»r  ««r  .**  ««ke4-ie«»  Ci-t:*« 

•  •«•(•••«•■•        •....'■-■.a  .-I.        ••.•««*'r*«.        ».       *•••**•        •■•••*■••>...«•.         '•'\"^- 

An   ergunuj  <*  iife'ii»»   f.Ue  »-.'-^.Afcioo  ^r'* 
am^i'ndnieot    ■>'  i-^cjr   chirttt*  by   i%».y&  In'*,!...;  .-*«*» 
Jn   liati  of  ti.is  -if  *  nii>\>c>f»!d  tc   bava  cUui*  cst)nSr»J 
tl"j!mjel7w    c.i'Iei   a  fcM<:.-dil  ccnar.'   ^       '    -Uxi*?, 
jnrai;i«iii.J    :6i(  i;    'O  i*fiv>;t    Ral    jc;  iv.     o**ii 

tb»rf:e.r«  by  j^opui*r  /iieciica. 

91.  Reltttii'iv  (if  liw^«>*iii*u  >^L.  Conilltlans  tm 

tiif;  it7«x4isee  o*  Ccctit..    45«. 

UuuBO-T.  0  We  aie*. 
A  ntudiy  of  t>'«>  L-.ariiJ;?  Bouconiu  eoaiiii.vt*  \.;--»» 

upoi»  crian,  tr\»'',vt.i  by  "tJt^^e^w  ts  tf  (^JU}f,  whiiK 

F..  V.   !.•;««••  >»• 

Aq  «S'Ju'?Gr.v  to  sliow  Mittt  tiif  T"..  I*.!*!  '1.  .  !  H 

tr.5l/  «Ub«-:i  Sti'-f.  f 'vnw  it  k!oi..>4  I'^b-ilf  ; 

A'j'jan^r' *«*<♦. 

..;  'r.-.    iavclop.'icnt  .a  Fninv..*   'i* 

»ci€i";«»j  f  i    i<!it.>.A'      "cnoc.y,  ti'^at^jg   ;a   > 
P.*iyh;  ir.r..  :  f,  Olo*' :^al  Schot)?,  tt-    i?.oi.5,.-    ,  .   "i 
Pro'iectjoi  is*. .    .  "i  of  Ia  V'^a>  Jtaa  the  £t.»jvni»fii 

»  :Cr:0.!i!'jt3. 

0*.  lile^tat^oii  «»<"K«*oao?ni«ii»t»i<ly  i«l*nJ»lle 
iXW^  f*V*v.:!<«:  •VIf,^*-'lty 2:j*-. 

The  pMrpo.*.-!  stc  sho-v  >.c.w  the  ti-udy  !.r  a  wo  >•«.«* 
may  'ne  uivlti  if  use  In  th-^  pia.?i:?  til  w'ik  of  a'tM-'rij 
"r.-icK'  tbi*  yrot-iQuis  o:  piV'rtv  In  <*r'n.->  ?:>  ih*» 
*uth'r  iMvet?  :i>!  ?*•'>".■ '."if    -t' t}«c  'OAdinr  "  '    '".t 

i)iVi^  l»5en  0;:-<?l  Ii"  -''"iy jn%i-;->,  aj\:i ->i  t     .      •.•  'j^ 
iTosteti  to  hftij/  fuKTljsn  py ve;iy. 


«J8.  Hovnefwiw  ** 


*o>^  i»>  t  ■ 


teB-t  !s  art  V  iiow  «.'i'.fm>'..\y  cair  fc  H'  ;!■  '.'in  the  iold  !»a*'s 
io;:*.fchflr  i^it)-   fci  o-^uiDcut   ■:)  !>>«  .T  that  'iermikiiy 
-«    .;  (?t«n<i  1^:,  tl'.-.^  ft'uglft  L-old  6\.iii*.r('.. 

»»^.  i'r*^  of  ?*i!v<J-«'  cs  >I;,»iif  v  •;»>.    n  -  V .  •»..;■;:.<•. 

A  };i-;tOTy  ot    ■'  ;v«  r.'.icu.ie,  v.  ;tii  -      >  :.      <>•- 

■;  . "e  111  tiiv  .i ,  • .  '.;  dnre  v>f  ••  •!>  61st  <    ■.  J,  i' 

s.iic  jas-iue  "i  iLi> .-. .  oAilod  Sh-i-u.  ♦.&  Avt  it»  isi».5  4 
;virn''Pr  '>f  rt> -rt.^  at-U  la'-i-i*  a:e  at  p '.-li;?'!  '">  Ki'..r 
infoiuioli i-n  u  :.  giv^i.  'n  ieti'il  \\\  tl'.!- t«.jiei'  ir- 

'<;*.  TastJt^-UJM  of  Ia!»ii5f<?  RUfar<>» 

'       .  t      '. 
A  plart  io  pro V Jilt  licl:  sn»'n  f.om  i-»|»lu|;   'li 
Ijiing  !i?e  or  t>  i^a1c« '.'irftt  £«)•  Uj  -^f  ■  ■;,    ;     '• 
ore 'to  a     ^'.;  aJ  l.'.'vrd  o.' •>juiirii  ••■;■■ - 
L-j  to  dftvot.'  tho  proi'p.ajfi  «.(  all  5;,^»-r.  \_;\  .-..  i,,x»:s»  to 
th^  work  of  U'akic^' b..>..i^ty  bettt-    ..nd  V'-.pvi'^: 

T'>'»p'»r;  ■     .  ;    :ti.  paper  13  ?.')  taoTF  v./.' v  . 
;av  }  of  ti)i(  ( «<I..<iJ*)(j  tv..i;i  Iraur  itt  i  i:.*c  i.iu  <-<>•.    ;!.:• 
ti'jaT?cf  t.io  oii/inai  btacvjs,  whith  pr'M«'.^»  '!*  w  'h 
seto,\,l  atii:; '  J  1  tiia  (^"on-th  of  Aiaencun  c  nf^^tifuiiai-i' 
lav,-.    The  ',r- 1  r.ia;ivc.f  r'-Jv  jip*  ■>''''     -r         •■  j  d    w 
P>x.ftis«ior  Movtsy  »7t  iio.  ly. 

99.  '^%:*i\\90.  "iV«»»nejfj''4  tVw|Mf«*^y-  fit  .*w:<|->'' 
Kux.t,.ti  r»j»«t  A  •»;:!«>- >.',  J  ».»a«  L.ttv... -i*^% 

*.  j'."'iv-  t»'  ih:*  origin  M  d  tTOTvtJi  -A  totw?'' •"      *  ■' 
'.-.';.  in  rt:vj»' '  t*>  (.wiijii^:  ,>>c('«v;:>   \:TvJ'r  r'.i         ^    ;  • 

rrvi.i  V  OlJi'M  '       .    (.-    i?  WitlutllUV}Sin^;4Qtyi>r!U« 

l^P,  S**jf»tin  ..  .        .    ^xi-vjkTji \'%v. 

biavJik'^i*  \-^  I -»rc't.i.:t  V        •     .    J.  '  !,u  t;:?-'"    « 

h-'j-.  fc»  '>vrtf'  ?.'H  t.nnrgiM.  u.  rai.iin..  .  ;iti  u  "ik  '..  ' 
otii?r  cT.'n='  "*'  i.'^-  •»  >vi>'?.  IL*«  UiO'"'  ''V'Kvf' '  V  rc»  iL . 
fa»  ;'ii>' 


f!.E>!S 


H'^ 


r  . 


JULk 


:Jb 


UbM£ 


rO^,S  OF  THJi   ACADEMY. 


*?6 

101.  T'"^-    *r'^df."<»val  ?Ii.-vn*!Ji'". 13'.'. 

F.i'W.  ■;•.  Ci'.VY.iKV. 
\V,,it?.r.iv  ♦by  trst)SU>tio^i  rj  a  rvpios)  ex*ent.     The 

eiteiiv  wii  s    csv'rii'tiijx*  r..i  i  v!-l'i*(s.tt  of  ?hf  H5-«.i  ■a'i 
Tfailno  of  *a  15ntrli.,b  raaro.-,  'uoly'^iug  a  lii.'-  cl 

U3*nt3.  «.'v''i  iuvir  ti>i-^  Jjiis.r.JTir.  a:  d  -•;ji'- icrs 

104.  t-.kl«i'«t  W;ii«<?':--jy  ^■..;»/*.    »'ii'4-*«s-    JU^r^rinr, 

In  T-  •.  '  :     '."!.    .  . 81. ,<»•>. 

<».  pl«5a  IT  *  •■   I    ■■■  ■•.I'.jin^  «'/  fara'    '       .  ^-ae^  of 

f:c;-..j.  ..;    ,.■  ,,    ...  :•    .    .   .•;    -l-uUv/.-    y  «.  iij  l>«l;i 

T"    ^r'/t.'.'  ^  ■^  •-/     -  ^Uj^,  ;  ','  i.  *'.•!;>..•.■*  Im.'^    Till  pf.!"l'jit 

*h«ni  tog«tlier. 

iOU.  lutiifeiieait  sA'.idl  f''«fc*ilt«» iT/c. 

i'he  liici  •.■*  t  If;  pi,;j:r  i    'o  r*.cv*  rhaf. f,';t  fusiil>cf«- 

tiv;;  '■*  »■■'♦■»;'•>•*  '-^  ■■^>  )»v''  -"-ogUt.  tr.  vip  .".»<•';  vt-til  '^   '».!:•■ 

>•';''?.  .tat. »;.'^., VI  >.-d'ffir-y  wl  ^' wJii*-....,... 25e. 

A  T«p'y  to  (•i'>It->'%'^or  ?    •.-■»:.   U.??'.'t'%  '•■ThtT'ry  o' 
V-.^.ln-.''  f'c    ;•■•  b;j   r.  .t.  i;-ri.;«'  c£  t.ht' v'^'iic^  at  »•■'»«» 

fccS-=- ■■     '■.'■«.    ■      ■  ■■■  •'  ^.■.■^  <  .a.-'sical  titfe'jries, 

OI«»'..rJ<»«t^'«>r.»  ..      ...,  , . .4^f.. 

JOrSK   h,  .li<'B30".V. 

A;  A^tt;>>     .,      .      .i^:«'.'..,   .r);  J  irpose  i.->   •  to  auo'v 
t!"S  vMe  •?ivv»T;»enct  v»'(»)i:u  rli«»  theory  ri  .iiKtrtV  .'tv-i 

piiifeiiVB  . >.'.<:<  r-^,ir.;'  •■  .  V.', ; ;  ti;.i.'.\j  it  '.*  'Tc'i'.  witH  olyeiit- 

X\m  •  l>iecit''>-  ^.rr'i  *!•-<  i-'a'r«:'  "jv  »  j ,v>Mo.,fl  oi  i,'...rj>lus. " 
lOf'i.  Coav  4.I"  ilM.  <  »!  *u««-  If ar».». 

of  «.  'sliHK'jt  tL^orer uncut.  >"<•■  ii  .i  ,ir,  ..•..'  i_;  v  ;>.  j-.  J«>'>.  37. 

I07,  "jCoftsS  T'«34lly    ^tn-.i.«att'«l  of  HH'if fi%-i^ 

H'^iayttVifuij*..  ., .. a>*'. 

An  jn'airy  iiitc  :-h :  <|»'.»^,doi;  -^i  it>w"!ii8.»  •  «»r.>t  of 
fMi.u*''-'  ;>TvT-.rni,  1  /  u  tut  qw^'iifi^'!  a*.  U    w''-<i  !*!'.  the 

VMS.  Ifntl?.!!*  ft^a-Ttr.'...-'-     .      .     ,      ,.  ..*!l3n'. 

f      ..?    .•..    1_.  STOI^RIWOH ''.c 

Au  expiAtmViOM  oi  the  pa%t  1111^1""^''^ «**-'■ '^tai''   •* 

i.'.vfi  '.  '"!l  r  "Si'.lc  i'^j\'\  cioi.ug  th^  ini7)(^  :  -  inViia.  ti> 

Krgta-..:*  •f\'\'\  t:»  t^.e  \vot1;1      Tiivi    •  ■    "■•'    ''   • 

fj'Xi'^Mt ...S*J<'. 

'■■\\l.  j>ttAPi.uLiCrt:-. 

vas  ... a**<'. 

r.' :  C.  Txo'h".. 

:'•',       ■■  ■    ■     .   .  .■;  '■'■:.    ;..cc-3Tri  Tax 
f        .  iih  ft  pJe%  for  t'»e 

'  •  • .      .  .  •■  ■  tuiMnr  ;i'V-  o  •;' 


!   So, 

;    lis.  X^it  J*ti«»u«u'4>  MiO€l»i« *5<K 

I       The  En'^li^b-ew'.^MnKpnbl!*;  ha*;  r-^rLai'S  jiCifr  hi)\t 
j    i.ivJonstO'.Ni  tr'.>'''?a  ii»  ior  th«  dnisi  ii  a/i#»*  tto  oie«lfl 

.""rsi.     T  lis  ,.>3!;.Kr  Vx^.lsirs   ;■.•)!>   thai  iwxM^'U  kft  fclifc 


>">..»if»iyMM  i  , V ,. iit$*» 

Tl.*8  ya,*.^.  ovijjiraUr  put' '^iHtlby  Fr  '■'  tsfic^3:ru)^x 
iri  biBy«A>-4i^.-A.,  .'S  ♦.h:j  ethio  i/TofMifvif  u  :  (  l\\io.  ot  (.bo 
leaufcv  at!  the  HlotiCXiiiil  £tUo»A  in  OPTi.»air^ 


111.  Ciuft«fX^cjiiilf>u>k»fl,<aTi' ...Ih^, 

.\4t  j(ft,ti»iEjii  to  HTfi  ft  clftfldf  cftfcion  0/  /i.v«C't  »i\ijft- 
ciei't-  .sft;"i)e  to  .leVve  ^a  *.htt  las-is  lor  fch«  *r;»ag«;iiiati* 


cf  the  laM-s  ./  i  n: 


•V.t!    ;.  ;vt  -ir  ■•    ^t'lgj-  of    ■'"  ''.'^r.'iop-  ' 


i^e, 

\j    ''re,  lavato.-!  0!   I!  7  mfr;:):'^''-}  ?•:    vci,^ue  lu  ^iJ* 
ir.'Sj!i-j.»  e  ooiiiva'i'*'*  tor.  collootfu^  i.'remiura'i..  upjif  i-- 

the  rciupurtjcr'. 

•3*S,  *^"*-  *Jo»%  &l' Tax %s%i Attn  {u  .^ou.>K»o5ii<*» 

..    .■....•*...•■■*•.....<■......       ■.....*•<■.-■'•.    .    -        ......fct**    a 

Aa  i»»iiitid£l?on  of  tJie  law?  of  Ulst. Tf^ati.-n.  to^<■'-^v•^iC r 
*--^tli  -i  oV'...';f. :&t'o-i  of  mcucpoHftii  .^iA  ,ii>  ciijI'jm-'Uoc. ; 
of  t'ifidiffctfnt  kiu\9  cf  t..ir?8,  ''r  '?c'n<l  br  uii  tiu^- 
cKit;i>nof  so  ur. -'i  of  'li?  jfei.«?M;  tj^oj/  of  taxatioo 
.iS  )>drtalo»  £<  t%<h.*  kTlod  with  the  puvpo*?  ':i  proiac- 
ing  i»f>  ctH?r  ofittt  t^ian  that  of  yieliirt;  ;)■&  State  » 

%l  MiK  . 

r.nfc51'.;a{:i,Ti  In  ^iwi!5h  lose.  M«'i  en  tha-  ^cctijiit 
forn::  a  jei^irabU  «\n»{»k«u«nt  to  oth  jr  w'v^fi o^i  th" 
H:st<iry  of  £(  o;iCtli".icf . 

i»«in« .._..;l»<%  . 

Ti^khig  iltvr  York  aa  tluj  typical  Aiuericau  .■•'ty,  ha  i 
«!:3\vs  tb^  t}5Ti£;*ir^  rh;*;h  4i.<.'  hrv**  :.p4t'>  fr.r-»=.  imdit .' 
4*i-i :  ^ ,  bv  '  points  p.!.t  t.>ic  '■'T»n  to  »^']  ^  •■  tbi-f.  1  pTol'letf.*. 

£^'».  Tlie   ?-*'i-»'vvrs-*    -;•>!'  «»nr    ^^'«;::'     1  j« -..«-» ■->■ 

!«*'«•  l:v    .  .......        — j^... -..'JSC  ; 

In  t.>i*i  |>ap«r  Mr   "Biadfcrd  trH  tli*.cuMc«  Hm  dw- 
jv  .fi  ;.,  nir  Stat'*  r''^''"wr;i»r.;»   ffcnflraily  ni'l  vh»"».'» 


I   r.'ti<iv.x   ap  r»?  v''**^'^^   f  or|et.^^ation  vf  y<"v  York 


.^'li 


•v,f  w't's  it  «;i)«ld  i-e  clmr.'. 


J)Kt'i 


?1  icr^r-r  in  U  3tcu!d  be  ondt. 


ITU'  f>ut  whar  t)i*y  re:''.Tj  ind  oaite  urn  to  i>ie  piiwptr.tjf  ■« 


liTJ,    J*:»ii;j! 


A   CTlM 


, ... 3 /♦•!•. 

L'-.jTB'i  I.  W/'  D. 


..-• «'>■•';.  < 

A  rovkn  ol  tUo  V(!tfc  ^£  the  Biolog'i;  SfhMl  oll?o-  ^ 
ciolo^i'i".  i*a£J  pol-.^ '  n-^  out  why  they  h.^,Te  faJlr  1  ,i 


m 


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; 


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D130 
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D130 
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Johiison,  Emory  Richard 


Relation  of  taxation  to  monopol--ijj 
ies* 


L 


-./^--  ,-r 


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END  OF 
TITLE 


